Wall Street, EU Stocks & Apple Plunge After Trump Tariff Threat/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ President Trump’s latest tariff threats against the EU rattled global markets Friday. U.S. stocks dropped sharply, with Apple taking a 2.2% hit amid targeted tariff warnings. Retailers and investors reeled as Wall Street faced renewed trade war uncertainty.
Trump Tariff Threats + Quick Looks
- S&P 500 dropped 0.9%, heading for its worst week in nearly two months.
- Dow Jones fell 366 points, while Nasdaq dropped 1.2%.
- Trump threatened 50% EU tariffs, effective June 1.
- Apple shares fell 2.2% after Trump warned of 25% tariffs on foreign-made iPhones.
- Retailers like Ross and Deckers slashed guidance amid tariff pressures.
- French CAC 40 tumbled 2.7%, reflecting global investor anxiety.
- Gold surged 1.6% as investors sought safety.
- 10-year Treasury yields dipped to 4.50% on fiscal worries.
Deep Look
Markets across the globe slumped Friday as President Donald Trump reignited trade war tensions with a fresh tariff threat aimed squarely at the European Union. The President announced that he would impose a sweeping 50% tariff on EU goods starting June 1, citing stalled trade talks with one of America’s biggest partners. The declaration, posted on his Truth Social platform before markets opened, set off an immediate wave of investor concern.
Wall Street reacted swiftly. The S&P 500 fell 0.9% in early trading, poised for its worst weekly performance in nearly two months. The Dow Jones Industrial Average dropped 366 points, or 0.9%, while the tech-heavy Nasdaq Composite lost 1.2%. Futures markets, which had predicted a modest open, quickly reversed as news of the tariff threat spread.
European equities were hit even harder. France’s CAC 40 plunged 2.7%, underscoring the widespread unease among investors who had hoped Trump’s previous tariff pause would signal more diplomatic trade resolutions. Instead, Trump’s new message rekindled fears of a prolonged economic conflict.
Adding fuel to the fire, Trump singled out Apple in his social media message. He warned the tech giant would face a 25% tariff on iPhones not manufactured in the U.S., intensifying scrutiny of global supply chains and offshore production. Apple’s stock quickly declined by 2.2%, becoming one of the largest drags on the S&P 500.
This isn’t the first time Trump has publicly pressured major corporations. In past comments, he demanded that Walmart absorb tariffs rather than passing costs to consumers—a claim dismissed by the retail giant, which cited the increased import burden. His comments reflect a broader strategy of leveraging corporate decision-making to influence trade negotiations.
Meanwhile, retail stocks were among the hardest hit. Deckers Outdoor Corporation, known for its Hoka and Ugg brands, saw its stock nosedive 22.8% after it declined to provide a full-year financial forecast. Citing economic uncertainty and trade instability, the company limited its guidance to the upcoming quarter, which fell short of Wall Street’s expectations—despite stronger-than-expected quarterly earnings.
Ross Stores also pulled its full-year outlook, citing cost pressures from tariffs, particularly since over half its inventory originates in China. Even though Ross reported better-than-expected profits for the last quarter, its shares dropped 12.2% as investor confidence waned.
Trump’s new tariff rhetoric has shaken Wall Street just as the market had begun recovering from last month’s deep slide. The S&P 500 had clawed back nearly all its losses, coming within 3% of its all-time high earlier this week after the administration paused tariffs on multiple fronts, most notably with China. That optimism now appears premature.
Bond markets reflected investor caution as well. The yield on the 10-year U.S. Treasury note dipped to 4.50%, down from 4.54% the day before. The drop marked a retreat from early-week highs that stemmed from concerns over the federal deficit and tax-cut-related debt accumulation.
Asian markets had closed before Trump’s announcement and ended mixed, largely escaping the day’s turbulence. In commodities, gold prices rose 1.6% as investors sought safe havens amid geopolitical and economic uncertainty.
As the June 1 tariff deadline looms, markets remain on edge. With global supply chains, consumer pricing, and corporate forecasting all under pressure, Trump’s renewed trade conflict threatens to reverse the fragile optimism that had started to return to Wall Street. The coming days will test whether businesses and investors can weather yet another round of economic uncertainty triggered by the White House.
You must Register or Login to post a comment.