WSJ Opinion: Potomac Watch Donald Trump's Latest Tariff Threats, on iPhones and the EU
May 28, 2025
In this discussion, Joe Sternberg, a Wall Street Journal colleague based in London, and Mene Ukwe Barua, also from the editorial board, delve into Trump’s recent tariff threats aimed at the EU and Apple. They explore the feasibility of U.S. iPhone manufacturing amid potential 25% tariffs on imports from India. The conversation touches on the economic implications of these tariffs and the evolving dynamics of U.S.-China relations, while also unpacking the complexities surrounding Nippon Steel's acquisition of U.S. Steel under a shifting political landscape.
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Trump's EU Tariff Threat Dynamics
- Trump's 50% tariff threat on EU imports was quickly paused after EU agreed to resume talks.
- The EU's negotiation challenges stem from its 27-member structure, complicating swift deals.
Market Views on Trump's Tariffs
- Investors now discount Trump's tariff threats as often empty bluster.
- Each tariff delay merely postpones the threat rather than removes it fully.
Contradictory Trade Policy Goals
- Trump's tariff approach conflicts: security, domestic jobs, and avoiding consumer cost increases.
- Apple's India move conflicts with Trump's desire for U.S. manufacturing of iPhones.