Donald Trump has threatened to impose a 50% tariff on the EU, starting from next month, after saying that trade talks with Brussels were “going nowhere”.

Mr Trump made the comments on his Truth Social platform.

It marks a fresh escalation in his trade row with the European Union, which he has previously accused of being created to rip off the US.

While the US has done deals with the UK and China to reduce their peak exposure to his trade war, the president’s EU threat, which would cover all EU imports to the US, would risk retaliatory measures from Brussels if carried through.

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Mr Trump said of talks between his administration and the EU: “Our discussions with them are going nowhere! “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.”

The European Commission was yet to respond to the remarks. Officials signalled there would be no comment until after a call between top US-EU trade figures due later on Friday.

Financial markets, however, were quick to take a view. European stock markets were sharply down across the board.

The FTSE 100 in London was more than 1.2% lower shortly after the Truth Social post appeared, while Germany’s DAX and the French CAC 40 were in the red to the tune of more than 2%.

US stock markets fell at the open on Wall Street. The tech-focused Nasdaq was down more than 1%.

The potential for damage to the global economy saw Brent crude oil sink by more than 1% to $63 a barrel.

The dollar took a hit too, as the news only intensified existing market worries this week about the sustainability of US government debt levels.

The pound was trading at levels last seen in February 2022.

Mr Trump said earlier that Apple will be forced to pay 25% tariffs on its iPhones unless it moves all its manufacturing to the US.

Apple shares dropped more than 2% in premarket trading after the warning, also posted on Truth Social.

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or any place else,” wrote the president.

“If that is not the case, a tariff of at least 25% must be paid by Apple to the US.”

Production of Apple’s flagship phone happens primarily in China and India, which has been an issue brought up repeatedly by Mr Trump.

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On Thursday, the Financial Times reported Apple was planning to expand its India supply chain through a key contractor.

Taiwanese company Foxconn is planning to build a new factory in the Indian state of Tamil Nadu, according to the paper, to help supply Apple.

Sky News has contacted Apple for comment.

President Trump’s Friday flurry of pronouncements marks the return of negotiation by smartphone and may trigger another period of profound uncertainty for international trade and financial markets.

The threat of 50% tariffs against the European Union, issued hours before his trade representative met their European counterparts, is a show of presidential muscle surely designed to strongarm those on the other side of the table.

It is an escalation likely to heighten the threat of retaliation from Europe, and with a few keystrokes ends the brief period of calm that had returned to global trade and markets in recent days.

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Talks in Switzerland between US and Chinese delegations a fortnight ago took the sting out of Sino-American hostility, negotiating three-figure tariffs that amounted to a mutual trade embargo down to manageable levels.

Financial markets had regained most of the losses sparked on ‘Liberation Day’ in April, when Donald Trump declared total trade war, and there was optimism that for all his bluster, there might be meaningful room for constructive compromise.

The UK even secured a deal of sorts, securing a reduction in auto tariffs in exchange for a reciprocal opening of agricultural markets.

There will be no such deal for the EU in a hurry. A 50% tariff on all exports to the US is not only higher than the original threatened blanket tariff of 20% and double Mr Trump’s proposed 25% on European cars, it’s higher even than China.

European stocks predictably ended the week in decline, with car manufacturers including BMW, Volkswagen and Stellantis all down.

It remains to be seen whether this threat will stick.

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Mr Trump has repeatedly blinked first in the trade war he started, backing down on global reciprocal tariffs when bond markets rebelled before caving in Geneva to reach an accommodation with China.

His grievances with Europe appear to have an extra edge however, and the consequences of the uncertainty he’s sparked will be far-reaching.

If this was the only thing he had announced on ‘Liberation Day’ it would still have been huge.

The latest energy price cap announcement brings a welcome if modest reduction in prices for 22 million consumers, and valuable context to the politically corrosive debate over the Winter Fuel Allowance.

From July, the maximum unit price for gas and electricity will come down 7%, amounting to a cut of £129 to Ofgem’s notional “typical usage” calculation for an average household, now set at £1,720.

It is the first fall in a year, reflecting the path of natural gas wholesale prices, which have been in decline since March and, on current forecasts, are expected to remain broadly flat as we head into the winter.

If that’s the case, then consumers can look forward to a period of relative calm when it comes to energy bills. Given that this cut will begin in July, the lowest-consumption quarter of the year, it would be particularly welcome if lower rates continue into next winter.

The weather, global economic fortunes determined by Donald Trump and the path of the war in Ukraine will all influence those prices, and you might not want to rely on any of them.

It is a safe bet that the winter fuel row will still be simmering, and this announcement is a reminder that it is a benefit with far greater political currency than actual economic benefit to the recipients.

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At £200 for anyone of pensionable age, rising to £300 for those over 80, the universal allowance was negligible or irrelevant for millions of recipients, but fundamental to the very poorest households.

The price cut announced today is worth 64% of the lower rate, and 43% of the £300 payment, underlining that energy prices and pensioner poverty are the fundamental issues, rather than an arbitrary benefit unchanged in 25 years and falling in real-terms value ever since.

Returning gas and electricity prices to the long-term pre-Ukraine war average of around £1,200 would almost double the value of the winter fuel payment, but there is little chance of that in the short term.

Addressing the wealth imbalance in a society where a quarter of the population will rely wholly on the state pension in retirement may be even more intractable.

In the meantime, consumers are advised to shop around for deals. This morning, several major suppliers are offering fixed rates below the new price cap, which might offer value even in a stable market.