Global stock markets fell sharply on Friday following a pair of sweeping tariff threats issued by U.S. President Donald Trump. Futures for the Dow Jones Industrial Average dropped 1.4%, while S&P 500 and Nasdaq futures fell 1.5% and 1.85% respectively.
The sudden market reaction was prompted by President Trump’s statement that he intends to impose a 25% tariff on Apple Inc. products not manufactured in the United States and a 50% blanket tariff on imports from the European Union.
In a post on his Truth Social platform, Trump declared: “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 anyplace else. If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.”
This marks the first time a U.S. president has proposed a tariff specifically targeting a single company. Apple shares fell by more than 3% in early market action, weighing heavily on broader indices. The technology giant, which had previously outlined plans to diversify its production base by shifting more iPhone assembly to India, now faces increased pressure to reconfigure its manufacturing strategy.
Industry analysts have pointed out that producing iPhones in the United States would significantly raise costs. At present, Apple relies heavily on supply chains based in Asia, particularly China and India, to maintain production scale and cost efficiency. A 25% import levy on Apple products would therefore pose substantial risks to the firm’s margins and pricing strategies.
In parallel, Trump accused the European Union of stalling trade negotiations with the United States, announcing his intention to impose a sweeping 50% tariff on all EU imports effective 1 June. The U.S. currently levies a standard 10% tariff on EU goods, with additional sector-specific rates on steel, aluminium, and vehicles. The proposed increase would mark a significant escalation in transatlantic trade tensions.
“These talks are going nowhere,” Trump stated, referring to ongoing but unresolved trade discussions with the European bloc. “So I’m recommending a straight 50% Tariff on the European Union.”
Markets responded immediately. The potential for a major deterioration in U.S.–EU trade relations, coupled with direct intervention in global corporate supply chains, triggered widespread selling across major indices. Tesla and Palantir Technologies each fell more than 1%, while Nvidia declined by over 2%. The semiconductor firm is scheduled to report earnings next week.
U.S. Treasury markets also experienced volatility. The yield on the 10-year Treasury note fell sharply to 4.45%, suggesting a flight to safety by investors. Crude oil prices retreated by more than 1%, reflecting broader concerns about global growth and trade disruption.
Thursday’s session had offered tentative signs of recovery following a week of losses. The Nasdaq Composite ended 0.3% higher but closed well below intraday peaks. The Dow Jones Industrial Average was flat on the day, having lost traction in the final hour of trading. The S&P 500 shed a fraction of a point, while the small-cap Russell 2000 edged lower.
The Invesco S&P 500 Equal Weight ETF (RSP), widely seen as a barometer of broader market health, closed 0.3% lower after failing to reclaim its 200-day moving average. Technical analysts observed that the S&P 500 is now at risk of breaking below its 200-day line at the opening bell, with the Nasdaq following closely.
Trump’s announcement introduces a high level of policy uncertainty just as markets had begun adjusting to elevated interest rates and mixed economic signals. While overnight moves in futures markets do not always translate into equivalent changes during regular trading hours, the coordinated retreat across equities, bonds, and commodities underscores investor unease.
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