US President Donald Trump continued his tariff war on Friday, this time threatening Apple and the EU with 25 per cent and 50 per cent tariffs, respectively, in an apparent act of frustration over discussions with them.
California-based Apple plans to shift its iPhone production from China to India to avoid steep US tariffs. But Mr Trump said on his Truth Social platform that he told Apple chief executive Tim Cook "long ago" to manufacture the company's flagship devices in the US and not "any place else".
"If that is not the case, a tariff of at least 25 per cent must be paid by Apple to the US. Thank your for your attention to this matter," Mr Trump added.
Analysts have warned that moving iPhone production to the US – which has high labour costs and sources several components overseas – may hike prices by up to 25 per cent.
Wedbush Securities analyst Dan Ives reiterated his warning that high tariffs may "translate into iPhone prices of [about] $3,500" – a cost he had already broached last month.
"The pressure from Trump on Apple to build iPhone production in the US as we have discussed this would result in an iPhone price point that is a non-starter for Cupertino," he said on X, shortly after Mr Trump's posts.
While iPhones are, for now, exempt from US tariffs, the components used for their production are not. Apple, during its conference call after its second-quarter financial results, warned of a $900 million hit in its next three fiscal months owing to the trade war caused by the tariffs.
Mr Cook also made it clear that the company's projections are based on an assumption that the situation will not change, indicating they could get higher or lower. It remains unclear how the move to India will affect production costs.
Shares of the world's most valuable company slid by more than 3 per cent in premarket trading after Mr Trump's post. Major US and European stocks also fell.
Shortly after the post about Apple, Mr Trump took aim at the EU, which he said was taking advantage of the US in trade and was "very difficult to deal with".
The 27-nation bloc's "powerful trade barriers, VAT taxes, ridiculous corporate penalties, non-monetary trade barriers, monetary manipulations, unfair and unjustified lawsuits against American companies ... Our discussions with them are going nowhere", the President said.
"Therefore, I am recommending a straight 50 per cent 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. Thank you for your attention to this matter."
Mr Trump's message also comes before an expected call on Friday between US Trade Representative Jamieson Greer and European Commissioner for Trade Maros Sefcovic, and it is unclear how Mr Trump's post will affect the discussions between the officials.
Mr Trump's threat to the EU is "shaking long-term trust in US economic leadership" and could lead into a long-feared recession, said Nigel Green, chief executive of Dubai-based financial services firm deVere Group.
“This isn’t a strategic bluff – this is a destabilising threat that could do real, lasting damage. Markets are rightly alarmed. Beyond the short-term volatility, there’s a bigger risk unfolding: the risk of recession and erosion of US credibility on the global stage," he added.
The sweeping US tariffs, which were unveiled in early April, has disrupted economies, stock markets, supply chains and businesses, all of which have been caught off guard and forcing governments into the negotiating table with the world's biggest economy.
The main protagonists in the trade war are the US and China, which have imposed very high tit-for-tat levies against each other – but tensions have since simmered since they agreed to a surprise 90-day truce on May 12.
Apple has made moves to appease Mr Trump, including plans to invest at least $500 billion in the US over the next four years to bolster highly skilled manufacturing, artificial intelligence and the development of students' skills throughout the country.
That came in February well before the tariffs were announced and earned praise from Mr Trump. The President, however, seemed to be gradually running out of patience with Apple, especially after he said on May 15 that the company shouldn't be making iPhones in India and culminating in today's social media post.
The EU is already dealing with a baseline 10 per cent tariff and 25 per cent on products, such as cars, aluminium and steel.
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Our family matters legal consultant
Name: Hassan Mohsen Elhais
Position: legal consultant with Al Rowaad Advocates and Legal Consultants.
What the law says
Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.
“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.
“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”
If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.
NINE WINLESS GAMES
Arsenal 2-2 Crystal Palace (Oct 27, PL)
Liverpool 5-5 Arsenal (Oct 30, EFL)
Arsenal 1-1 Wolves (Nov 02, PL)
Vitoria Guimaraes 1-1 Arsenal (Nov 6, Europa)
Leicester 2-0 Arsenal (Nov 9, PL)
Arsenal 2-2 Southampton (Nov 23, PL)
Arsenal 1-2 Eintracht Frankfurt (Nov 28, Europa)
Norwich 2-2 Arsenal (Dec 01, PL)
Arsenal 1-2 Brighton (Dec 05, PL)
Killing of Qassem Suleimani
US tops drug cost charts
The study of 13 essential drugs showed costs in the United States were about 300 per cent higher than the global average, followed by Germany at 126 per cent and 122 per cent in the UAE.
Thailand, Kenya and Malaysia were rated as nations with the lowest costs, about 90 per cent cheaper.
In the case of insulin, diabetic patients in the US paid five and a half times the global average, while in the UAE the costs are about 50 per cent higher than the median price of branded and generic drugs.
Some of the costliest drugs worldwide include Lipitor for high cholesterol.
The study’s price index placed the US at an exorbitant 2,170 per cent higher for Lipitor than the average global price and the UAE at the eighth spot globally with costs 252 per cent higher.
High blood pressure medication Zestril was also more than 2,680 per cent higher in the US and the UAE price was 187 per cent higher than the global price.
KILLING OF QASSEM SULEIMANI
UAE currency: the story behind the money in your pockets
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The specs
Engine: Dual 180kW and 300kW front and rear motors
Power: 480kW
Torque: 850Nm
Transmission: Single-speed automatic
Price: From Dh359,900 ($98,000)
On sale: Now
The Facility’s Versatility
Between the start of the 2020 IPL on September 20, and the end of the Pakistan Super League this coming Thursday, the Zayed Cricket Stadium has had an unprecedented amount of traffic.
Never before has a ground in this country – or perhaps anywhere in the world – had such a volume of major-match cricket.
And yet scoring has remained high, and Abu Dhabi has seen some classic encounters in every format of the game.
October 18, IPL, Kolkata Knight Riders tied with Sunrisers Hyderabad
The two playoff-chasing sides put on 163 apiece, before Kolkata went on to win the Super Over
January 8, ODI, UAE beat Ireland by six wickets
A century by CP Rizwan underpinned one of UAE’s greatest ever wins, as they chased 270 to win with an over to spare
February 6, T10, Northern Warriors beat Delhi Bulls by eight wickets
The final of the T10 was chiefly memorable for a ferocious over of fast bowling from Fidel Edwards to Nicholas Pooran
March 14, Test, Afghanistan beat Zimbabwe by six wickets
Eleven wickets for Rashid Khan, 1,305 runs scored in five days, and a last session finish
June 17, PSL, Islamabad United beat Peshawar Zalmi by 15 runs
Usman Khawaja scored a hundred as Islamabad posted the highest score ever by a Pakistan team in T20 cricket
Pharaoh's curse
British aristocrat Lord Carnarvon, who funded the expedition to find the Tutankhamun tomb, died in a Cairo hotel four months after the crypt was opened.
He had been in poor health for many years after a car crash, and a mosquito bite made worse by a shaving cut led to blood poisoning and pneumonia.
Reports at the time said Lord Carnarvon suffered from “pain as the inflammation affected the nasal passages and eyes”.
Decades later, scientists contended he had died of aspergillosis after inhaling spores of the fungus aspergillus in the tomb, which can lie dormant for months. The fact several others who entered were also found dead withiin a short time led to the myth of the curse.
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Zayed Sustainability Prize
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THE RESULTS
5pm: Maiden (PA) Dh80,000 1,400m
Winner: Alnawar, Connor Beasley (jockey), Helal Al Alawi (trainer)
5.30pm: Maiden (PA) Dh80,000 1,400m
Winner: Raniah, Noel Garbutt, Ernst Oertel
6pm: Handicap (PA) Dh90,000 2,200m
Winner: Saarookh, Richard Mullen, Ana Mendez
6.30pm: Sheikh Zayed bin Sultan Al Nahyan Jewel Crown (PA) Rated Conditions Dh125,000 1,600m
Winner: RB Torch, Tadhg O’Shea, Eric Lemartinel
7pm: Al Wathba Stallions Cup Handicap Dh70,000 1,600m
Winner: MH Wari, Antonio Fresu, Elise Jeane
7.30pm: Handicap Dh90,000 1,600m
Winner: Mailshot, Royston Ffrench, Salem bin Ghadayer
KILLING OF QASSEM SULEIMANI
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The years Ramadan fell in May
Citadel: Honey Bunny first episode
Directors: Raj & DK
Stars: Varun Dhawan, Samantha Ruth Prabhu, Kashvi Majmundar, Kay Kay Menon
Rating: 4/5
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
