President Donald Trump boards Air Force One to depart Joint Base Andrews, Md on May 23. (AP)

 WASHINGTON, May 24, (AP): US President Donald Trump on Friday threatened a 50% tax on all imports from the European Union as well a 25% tariff on smartphones unless those products are made in America. The threats, delivered over social media, reflect Trump’s ability to disrupt the global economy with a burst of typing, as well as the reality that his tariffs have yet to produce the trade deals he is seeking or the return of domestic manufacturing he has promised voters.

The Republican president said he wants to charge higher import taxes on goods from the EU, a longstanding US ally, than from China, a geopolitical rival that had its tariffs cut to 30% this month so Washington and Beijing could hold negotiations. Trump was upset by the lack of progress in trade talks with the EU, which has proposed mutually cutting tariffs to zero even as the president has publicly insisted on preserving a baseline 10% tax on most imports.

“Our discussions with them are going nowhere!” Trump posted on Truth Social. “Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States.” Speaking later in the Oval Office, Trump stressed that he was not seeking a deal with the EU and might delay the tariffs if more companies invested in the United States. “I’m not looking for a deal,” Trump told the reporters. “We’ve set the deal. It’s at 50%.”

The EU’s top trade official, Maros Sefcovic, posted on the social media site X that he spoke Friday with U.S. Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick. “The EU’s fully engaged, committed to securing a deal that works for both,” Sefcovic said. “EU-US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests.” Trump’s tariffs against Europe had been preceded by a threat of import taxes against Apple for its plans to continue making its iPhone in Asia.

Apple now joins Amazon, Walmart and other major U.S. companies in the White House’s crosshairs as they try to respond to the uncertainty and inflationary pressures unleashed by his tariffs. “I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”  

Currency traders watch monitors near a screen showing the Korea Composite Stock Price Index (KOSPI), top left, and the foreign exchange rate between US dollar and South Korean won, top center, at the foreign exchange dealing room of the KEB Hana Bank headquarters in Seoul, South Korea on May 22. (AP)

TOKYO, May 22, (AP): Asian shares fell Thursday after Wall Street slumped under pressure from the Treasury bond market and worries about surging US debt. U.S. futures were little changed, while Japan’s benchmark Nikkei 225 shed 1.0% in afternoon trading to 36,944.55. Hong Kong’s Hang Seng lost 0.9% to 23,615.21, while the Shanghai Composite edged down 0.1% to 3,383.10.

Australia’s S&P/ASX 200 slipped 0.5% to 8,342.80. South Korea’s Kospi dropped 1.1% to 2,595.69. Rising yields for US Treasury bonds are a canary in the coal mine, Stephen Innes of SPI Asset Management said in a commentary. “The USstill has the biggest markets, the deepest liquidity, and the dollar’s inertia working in its favor.

But even inertia can’t outrun compound interest and structural deficits forever,” he wrote. The declining US dollar also weighed on regional markets, according to some analysts, because some Asian nations have significant holdings in dollars. A weak dollar also hurts Asian exporters, such as Japanese automakers and electronics companies, by reducing the value of their overseas earnings when they are converted into yen.

In currency trading, the US dollar fell to 143.27 Japanese yen from 143.68 yen. It had been trading at 150 yen levels a year ago. The euro cost $1.1335, up from $1.1330. Investors remain worried over President Donald Trump’s actions, including tariff policies that directly affect Asian companies and decisions on major legislation such as a funding bill now in Congress. “US equities slumped in a ‘Sell America’ move as things turned ugly on Trump’s ‘big, beautiful tax bill.’ ” said Tan Jing Yi, analyst at Mizuho Bank in Singapore.

On Wednesday, shares tumbled on Wall Street after the US government released the results for its latest auction of 20-year bonds. The government regularly sells such bonds, which is how it borrows money to pay its bills. In this auction, the US government had to pay a yield as high as 5.047% to attract enough buyers to lend it a total of $16 billion over 20 years.  

Gold prices climb for the third consecutive session amid a softer dollar and geopolitical tensions.

NEW YORK, May 22: Gold prices rose for a third straight session on Wednesday, reaching a one-week high, supported by a weakening US dollar and growing safe-haven demand amid ongoing economic and geopolitical uncertainty.

As of 1:55 p.m. ET (5:55 p.m. GMT), spot gold gained 0.7% to trade at $3,312.77 per ounce, while US gold futures closed 0.9% higher at $3,313.50.

The US dollar index (.DXY) fell 0.6% against a basket of major currencies, making gold more affordable for holders of foreign currencies and bolstering demand.

Meanwhile, Wall Street’s major indexes dipped, and government bond yields rose as investors monitored the ongoing debate over former US President Donald Trump’s tax-cut bill, which has fueled concerns about the nation’s mounting debt.

“We are kind of paused here in mid-range between the high and recent low, waiting for a signal of more trade and tariff deals,” said Daniel Pavilonis, senior market strategist at RJO Futures.

Despite a temporary easing in US-China trade tensions, the economic outlook for the U.S. remains weak, according to a Reuters poll of economists.

In geopolitical developments, CNN reported on Tuesday that new intelligence suggests Israel is preparing to strike Iranian nuclear facilities. This comes even as the US administration continues discussions with Iran over its uranium enrichment program.

Gold is widely regarded as a safe-haven asset during times of economic or geopolitical instability. Bullion prices reached a record high of $3,500.05 last month.

“We expect gold’s recent price dip will stimulate investment buying, as macroeconomic and geopolitical uncertainty linger,” analysts at ANZ said in a note.

Silver also posted gains, rising 0.8% to $33.32 per ounce.