Markets Drop After Trump Threatens EU Tariffs, Targets Apple

U.S. markets along with European markets experienced a major decline on Friday after President Donald Trump announced his intention to impose 50% tariffs on EU imports alongside 25% tariffs on Apple iPhones manufactured abroad thus triggering an immediate shock to worldwide market values.

The S&P 500 index experienced a 0.9% decline during early trading while the Dow Jones Industrial Average lost 366 points which represented a 0.9% decrease and the Nasdaq Composite index decreased by 1.2%. Apple stock declined 2.2% due to investor concerns that its worldwide manufacturing operations along with its pricing capabilities would face major disruptions.

The stock market plummeted after Trump shared his Truth Social post which criticized the EU for their unproductive trade talks. Trump announced through Truth Social that the EU would face a 50% tariff starting June 1 unless they made progress in their talks.

The proposed tariffs from Trump would create intense trade disputes between the United States and Europe. The EU serves as the U.S.'s primary trading partner so European stock market indexes matched Wall Street's decline. The CAC 40 in France sank 2.7% while the DAX index in Germany declined by more than 1.7%.

The President of the United States specifically addressed Apple through his statement about imposing a 25% tax on all foreign-made iPhones. According to him the United States needs iPhones to be manufactured and built domestically.

The previous exemption Apple obtained in April became invalid when Trump introduced his new tariff plan which targeted China. The change in stance could force Apple to rethink its international supply operations while potentially increasing prices for American consumers.

The market showed stability before opening but Trump's fresh tariff declaration brought back market volatility which destroyed market expectations for a calm week's end. Global economic growth faces potential risks because of renewed investor worries about protectionist policies.

The market remains focused on whether Trump will carry out his threat or if this represents a strategic move to negotiate trade agreements with partners.