President Donald Trump has once again caused a stir after announcing plans to impose a 50% tariff on all imports from the European Union (EU) and a 25% tariff on all smartphones made outside the United States (US) via his Truth Social platform on Friday.
However, in the latest development, Trump announced a delay in the implementation of the tariffs on the EU until July 9, giving the bloc a last-minute window to reach a new trade deal.
The delay followed a phone call that was said to have "went very well" between Trump and European Commission President Ursula von der Leyen.
In previous statements, Trump expressed his disappointment at the failure of negotiations with the EU, even though the EU had proposed eliminating bilateral tariffs completely.
Trump rejected the proposal and insisted on maintaining the basic tariff of 10%, while warning that the overall tariff would be increased to 50% if no progress was made by the June 1 deadline, which has now been extended to July 9.
But this reprieve will not be given to smartphones at all!
Trump is sticking to his threat to impose a 25% tariff on all smartphones manufactured outside the US, including popular products such as the iPhone and Samsung.
This puts huge pressure on companies like Apple, which now relies heavily on production facilities in India and Vietnam.
Stock markets also reacted quickly with the S&P 500 index falling by 0.67%, reflecting investor anxiety over the uncertain direction of Trump's trade policy.
For now, the EU has been given a period of calm to find a diplomatic solution. But when it comes to smartphones, "a new trade war has already begun."
