President Donald Trump is once again wielding his favorite trade weapon: tariffs. But this time, he’s setting his sights on two very different American companies — tech giant Apple and toy maker Mattel — threatening hefty tariffs over comments made by their CEOs.

The Tariff Threats: Apple and Mattel in the Crosshairs

In recent weeks, Trump publicly warned that Apple could face a 25% tariff on imported iPhones if the company doesn’t manufacture them in the United States instead of India. On social media, Trump made it clear: “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”

He later softened this by saying any such tariffs would apply to all imported smartphones — including competitors like Samsung — to keep things “fair.” Still, smartphones have largely been exempt from Trump’s previous China tariffs, so this move would mark a shift.

Meanwhile, Mattel caught Trump’s ire earlier this month when CEO Ynon Kreiz mentioned that tariffs might force the company to raise toy prices and that shifting production back to the U.S. would be too costly. In response, Trump threatened a staggering 100% tariff on all Mattel toy imports, saying: “He won’t sell one toy in the United States… I wouldn’t want to have him as an executive too long.”

Legal Hurdles and the Limits of Presidential Power

Despite the grandiose threats, experts say Trump’s ability to single out companies for tariffs is legally shaky. A recent court ruling questioned whether the president can unilaterally impose tariffs without Congress’s approval — though that decision is currently on hold after an appeals court stepped in.

Trade attorney Lizbeth Levinson explains, “He doesn’t have the constitutional power to name names. Tariffs need to apply to an entire class of products, not just one company.” But she also adds, “Trump’s style has always been to act first and sort out the details later.”

What’s Really Going On?

Behind the scenes, the tariff threats may be less about actually slapping taxes on imports and more about squeezing these companies for concessions. The goal? To push Apple, Mattel, and others toward promises of more U.S.-based investment or to control how companies talk about price increases tied to tariffs.

Clark Packard, a trade expert at the Cato Institute, points out that imposing steep tariffs on iPhones would likely backfire politically. “The American public would be outraged if their iPhones got a lot more expensive,” he says. “So I don’t see specific action against Apple as likely.”

For Mattel, the national security rationale behind tariffs doesn’t apply — unlike smartphones, which might be scrutinized under Section 232 of trade law (used to justify tariffs for national security reasons). That makes imposing a 100% tariff on toys even less probable.

Trump’s Tariffs as Negotiation Tools

Levinson suspects the real aim isn’t to shut down imports entirely but to force companies to “blink.” If Mattel, for example, agrees to move even a small fraction of its toy production to the U.S., Trump can claim victory. The same applies to Apple and the tech sector.

“I’ve had clients calling me, panicked about these threats,” Levinson says. “But honestly, many of these tariffs were never going to go into effect.”

The Takeaway

Trump’s tariff threats against Apple and Mattel highlight his ongoing strategy of using tariffs as leverage rather than as actual trade policy. While the legal and practical obstacles to imposing these specific tariffs are significant, the president is clearly willing to push the envelope to try to force companies to follow his vision for American manufacturing.

Whether these threats translate into real economic impact or just another round of political posturing remains to be seen. But for now, Apple fans and toy lovers alike can breathe a little easier — the tariffs, for now, remain more bark than bite.

Source: CNN – Trump is threatening to impose tariffs on two American companies

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President Donald Trump shook up the trade world Friday morning by threatening a 50% tariff on goods imported from the European Union. His warning came after what he described as stalled trade negotiations and longstanding grievances with EU trade policies.

In a post on his social media platform Truth Social, Trump slammed the EU for what he calls unfair practices: “Powerful trade barriers, VAT taxes, corporate penalties, monetary manipulations, and unjust lawsuits against American companies” have contributed to a massive trade deficit with the U.S.—more than $250 billion annually, a figure Trump calls “totally unacceptable.”

“Our discussions with them are going nowhere,” he wrote bluntly. “Therefore, I am recommending a straight 50% tariff on the European Union, starting June 1, 2025.”

Immediate Reactions and Market Impact

The European Commission has yet to issue an official response. A spokesperson, Olof Gill, said he was awaiting a call between Maroš Šefčovič, the EU’s Trade Commissioner, and U.S. Trade Representative Jamieson Greer—a discussion Reuters reports is scheduled for Friday morning.

Meanwhile, Treasury Secretary Scott Bessent weighed in during a Fox News interview shortly after Trump’s post. Bessent criticized the EU’s recent proposals, saying they have not matched the quality of deals from other key U.S. partners. “I hope this lights a fire under the EU,” he added, noting the bloc faces a “collective action problem” that complicates negotiations.

Markets reacted swiftly to the news. European stock indexes took a hit: Germany’s DAX fell 2.4%, France’s CAC dropped 2.2%, and the STOXX 600 benchmark declined 1.7%. London’s FTSE slipped 1%. U.S. stocks opened lower too, with the Dow down by 480 points, or 1.15%.

How Does This Tariff Compare?

The 50% tariff Trump is proposing would be more than double the 20% tariff briefly imposed in April before a pause allowed more talks. That pause is set to expire on July 9.

Since then, the only major trade deal the U.S. has finalized has been with the United Kingdom. Treasury Secretary Bessent declined to name which countries might be next but said talks are “far along with India,” and several Asian nations have offered “very good deals.” He emphasized that most of America’s key trading partners are negotiating in good faith—“except the EU.”

What’s Fueling Trump’s Anger with the EU?

Trump has frequently targeted what he calls “non-monetary trade barriers”—policies that don’t directly involve currency but make U.S. exports less competitive. Among these, he points to the EU’s Value-Added Taxes (VATs) and Digital Service Taxes (DSTs).

• VATs are consumption taxes added to goods and services in the EU. While exports from the EU to the U.S. are exempted from VAT, American exports to Europe face this tax, making U.S. products more expensive there.
• DSTs target the revenue of large digital companies operating in the EU, including giants like Meta, Apple, Google, Amazon, and Microsoft. This tax applies to gross revenues from online services—even unprofitable operations—hitting U.S. tech firms disproportionately.

According to a 2024 Congressional Research Service report, these taxes put American tech companies at a disadvantage compared to their European competitors.

Is a Trade War Escalating?

Trump’s aggressive tariff threat comes hot on the heels of another trade-related warning, this time targeting Apple. He suggested a 25% tariff on iPhones if the company continues producing them overseas rather than in the U.S.

Despite recent meetings between Trump, Apple CEO Tim Cook, and U.S. officials—including discussions during Trump’s Middle East trip and conversations with Treasury Secretary Bessent—the president remains frustrated. Cook has stated Apple plans to shift iPhone production from China to India to reduce tariff costs, but Trump insists the phones should be made on American soil.

What’s Next?

With the July 9 deadline looming for the paused EU tariffs and these sharp warnings from the White House, the next few weeks could prove critical for U.S.-EU trade relations. The outcome may have broad consequences for global markets and companies caught in the middle.

Stay tuned as this story develops.

Source: CNN – Trump threatens a 50% tariff on the EU

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Just 48 hours after former U.S. President Donald Trump unveiled sweeping new tariffs on countries around the world, including a staggering 34% tariff on all Chinese imports, Beijing struck back with matching measures on American goods and companies. China’s Commerce Ministry didn’t mince words, calling the move “a mistake upon a mistake” and warning that “China will fight to the end” if provoked further.

“The U.S. threat once again exposes its blackmailing nature. China will never accept it,” the ministry said in a strongly worded statement.

Rather than scrambling to strike deals like many U.S. allies caught in the tariff crossfire, China is standing firm, presenting itself as a calm and confident counterbalance to what it calls “unilateral bullying” by the U.S.

The official line from Beijing? China’s economy can take the hit—and might even come out stronger.

“US tariffs will have an impact, but the sky won’t fall,” read a commentary in the state-run People’s Daily, China’s Communist Party mouthpiece.

“The more pressure we get, the stronger we become.”

Beijing’s narrative is one of resilience and defiance, backed by what it calls the “institutional advantages” of its political system. The leadership is betting that it can weather the storm—and perhaps even emerge as a new anchor in a shifting global trade landscape.

Trump’s latest tariff salvo threatens to bring total U.S. tariffs on Chinese goods to over 54%. In response, China rolled out its own 34% tariffs and announced restrictions on key U.S. exports like rare earth minerals—critical components in electronics and defense tech.

Not stopping there, Trump doubled down, warning that unless China drops its retaliatory tariffs, the U.S. will impose an additional 50% duty midweek. He also canceled previously requested trade talks with Chinese officials.

This high-stakes game of economic chicken is fueling concerns that the world’s two largest economies are locked in a spiral with no off-ramp in sight.

“No high-level diplomacy means no safety valve,” said Craig Singleton, a senior fellow at the Foundation for Defense of Democracies.
“The longer this drags on, the harder it becomes for either side to de-escalate without losing face.”

As Trump’s tariff agenda sweeps across allies and rivals alike, Beijing is trying to reshape its image—from authoritarian powerhouse to defender of open markets.

“China will only continue to open its doors wider,” the Foreign Ministry said Saturday, adding that it remains committed to globalization “regardless of the changing international landscape.”

Chinese officials have been busy wooing American businesses. Vice Commerce Minister Ling Ji recently hosted a meeting with U.S.-funded companies like Tesla and GE HealthCare, pitching China as a “safe, promising place for investment.”

The message? If the U.S. wants a trade war, China’s not afraid. And for countries weary of rising protectionism, China is ready to be a steady partner.

Economists and scholars inside China say this trade war isn’t just about money—it’s about shaping the future of global trade.

“China and the U.S. are now direct rivals in reshaping the international trade order,” said Professor Ju Jiandong from Tsinghua University.
“We’re ready to compete.”

But skepticism lingers. Beijing has long used its massive market as leverage, and some countries remain wary of becoming too dependent on Chinese exports. Still, with U.S. tariffs slamming allies like Japan, South Korea, and the EU, many nations may be forced to look eastward for economic stability.

Even in cautious Singapore, Prime Minister Lawrence Wong didn’t sugarcoat it:

“The era of rules-based globalization is over. We’re entering a new phase—more arbitrary, protectionist, and dangerous.”

Despite its confident front, China isn’t immune to the fallout. After years of grappling with a real estate crisis, high local government debt, and post-COVID economic sluggishness, the trade war adds fresh pressure.

To counter the export drag, China has rolled out new policies to boost domestic consumption, with state media promising “extraordinary efforts” to keep the economy growing.

Unlike Western governments, China’s leadership doesn’t face voter backlash. But economic stability remains crucial to maintaining public trust and political legitimacy.

With both Washington and Beijing locked into their positions, the tariff battle shows no signs of easing. And with each new escalation, the global economy inches closer to a new—and far more uncertain—trade era.

How far will it go? That remains the trillion-dollar question.

Source: CNN – China calls Trump’s new tariff threat ‘a mistake upon a mistake’ and looks for opportunity in global trade war

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