Inventory futures slid Friday morning after President Donald Trump issued contemporary tariff threats towards the European Union and Apple, reigniting fears of a world commerce conflict and rattling traders.
Dow futures have been down by greater than 600 factors, or 1.4%, whereas Nasdaq futures dipped 1.,8%, almost 400 factors, earlier than the opening bell on Wall Road forward of the Memorial Day weekend.
In a put up on Fact Social, Trump stated he would impose a 50% tariff on items from the European Union inside days if ongoing commerce negotiations fail to ship “a fair deal” for American producers.
He additionally took direct intention at Apple, warning that foreign-made iPhones might quickly be topic to a levy of no less than 25%.
“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,” Trump wrote.
“If that is not the case, a Tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter!”
Apple shares led tech losses, falling 4%, whereas benchmark Treasury yields slipped as traders sought safer property.
Gold costs surged almost 1%, on observe for his or her largest weekly acquire in over a month.
Foreign money markets additionally reacted. The greenback misplaced floor towards most main friends, with the WSJ Greenback Index posting a notable decline.
Apple, which assembles most of its iPhones in China and has expanded some manufacturing to India, has no smartphone manufacturing presence within the US.
The corporate has pledged to extend home hiring and make investments billions stateside, however its provide chain stays rooted overseas.
Apple didn’t instantly reply to a request for remark.
The threats come amid an already tense backdrop between Washington and Brussels.
Senior US and EU officers had been anticipated to carry talks Friday to evaluate the standing of their commerce negotiations. Trump’s tariff warning might additional complicate these discussions.
In the meantime, the Group of Seven finance ministers and central bankers concluded their summit with a tepid assertion that made solely a passing reference to commerce and omitted any point out of tariffs.
Treasury Secretary Scott Bessent participated within the three-day occasion however supplied little public perception into the administration’s technique.
