Wall Street tumbles over 1% as Trump’s tariff threats on Apple and EU unsettle markets

Trump's recent tariff threats have sent shockwaves through Wall Street, causing major indexes to drop over 1%. Investors are now bracing for potential supply chain disruptions and rising consumer prices as trade tensions escalate.

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Updated 29m ago

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U.S. President Donald Trump reignited trade war fears on Friday, proposing a 50% tariff on EU imports and a 25% tariff on Apple iPhones not made in the U.S. This announcement sent the Dow Jones down over 400 points and caused Apple shares to drop 3.5%.

The Dow Jones Industrial Average fell 1.04% to 41,423.04, while the S&P 500 and Nasdaq also experienced significant declines. Futures for these indexes had already indicated a downward trend, with the Nasdaq futures dropping 1.8% before the market opened.

Trump's threats come amid stalled trade negotiations, with the President stating, "I'm not looking for a deal. I mean, we've set the deal. It's at 50 percent." Analysts have expressed concern that such tariffs could lead to higher consumer prices and further market volatility.

"We believe that this morning's social media posts about a 50% tariff on the EU are primarily a negotiating tactic," said Barclays analysts. However, the CBOE Volatility Index spiked to a two-week high, indicating rising market anxiety. The U.S. dollar also fell by 0.6%, while gold prices surged as investors sought safe havens amid the uncertainty.

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Wall Street's main indexes fell over 1% on Friday as President Trump's threats of a 50% tariff on EU goods and a 25% tariff on Apple iPhones unsettled investors, causing the Dow to drop more than 400 points and Apple shares to tumble 3.5%.

The Headline

Market turmoil following Trump's tariff threats

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.

President Donald Trump

Key Facts

Trump's tariff threats have caused Apple stock to drop over 3% in premarket trading, with futures on the tech-heavy Nasdaq 100 falling 1.8%.
Wall Street reacted negatively, with major indexes falling over 1% after Trump announced a 50% tariff on all EU imports starting June 1.+14
Investor sentiment has been shaken, with the CBOE Volatility Index spiking to a more than two-week high at 22.14 points.
Trump's comments about tariffs have reignited fears of a global trade war, causing significant market volatility.
Apple shares slid to a two-week low, down 2.5% after Trump's tariff threats, reflecting concerns about potential cost increases.
Market reactions included a 1.04% drop in the Dow and a 1.15% decline in the S&P 500, with all three major indexes ending the week more than 2% lower.

Key Stats at a Glance

Percentage drop in Apple shares

Percentage drop in Dow futures

1.5%

Percentage drop in S&P 500 futures

1.6%

Percentage drop in Nasdaq futures

1.8%

Percentage drop in Dow Jones Industrial Average

Point drop in Dow Jones Industrial Average

359 points

Percentage drop in S&P 500

0.9%

Percentage drop in Nasdaq Composite

1.2%

Overall percentage decline in major indexes for the week

more than 2%

CBOE Volatility Index value

22.14 points

Context of escalating trade tensions

Key Facts

Trump's tariff threats are seen as a negotiating tactic, according to Barclays analysts, but they have raised significant market anxiety.
Trade tensions have escalated, with Trump stating that negotiations with the EU are 'going nowhere' and threatening a 50% tariff on imports.1
European markets also reacted sharply lower, with Germany’s DAX falling 1.9% and France’s CAC 40 dropping 2.4%.
Gold prices surged as investors sought safe havens amid rising market anxiety, reaching $3,345.99 per ounce.

Key Stats at a Glance

Proposed tariff on EU goods

50%

Gold price per ounce

$3,345.99

Percentage increase in gold prices

Percentage drop in Germany's DAX

1.9%

Percentage drop in France's CAC 40

2.4%

Percentage drop in UK's FTSE 100

1.1%

Wall Street tumbles over 1% as Trump’s tariff threats on Apple and EU unsettle markets

Market turmoil following Trump's tariff threats

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Context of escalating trade tensions

Source Citations