Dow sinks 300 points after Trump threatens tariffs – Business News
Wall Street traders had been rattled Friday morning after President Donald Trump issued recent tariff threats in opposition to the European Union and Apple, reigniting fears of a world commerce conflict and rattling traders.
The Dow Jones Industrial Average sank 256 points, or 0.6%, whereas the tech-heavy Nasdaq fell practically 200 points, or 1%, and the broad-based S&P 500 dropped 0.7% forward of the Memorial Day weekend.
All three indexes completed the week with losses of more than 2%
In a post on Truth Social, Trump stated he would impose a 50% tariff on items from the European Union within days if ongoing commerce negotiations fail to ship “a fair deal” for American producers.
Stock market futures had been down significantly on Friday morning following new tariff threats from President Trump. Getty Images
He additionally took direct goal at Apple, warning that foreign-made iPhones may quickly be subject to a levy of at the least 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 3%, whereas benchmark Treasury yields slipped as traders sought safer property.
Gold costs surged more than 5% this week, their largest weekly gain in over a month.
Currency markets additionally reacted. The greenback misplaced ground in opposition to most main friends, with the WSJ Dollar Index posting a notable decline.
President Trump is demanding that Apple shift manufacturing of the iPhone back to the US. Apple CEO Tim Cook is pictured. AP
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 company has pledged to increase home hiring and invest 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.
Trump imposed tariffs to spur industry leaders to reshore their manufacturing. KENT NISHIMURA/POOL/EPA-EFE/Shutterstock
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.
Meanwhile, 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 provided little public insight into the administration’s strategy.
