What began as a quiet trading day ahead of the holiday weekend turned volatile Friday morning after President Trump announced sweeping new tariff threats, reigniting fears of a renewed trade war.
In a post on Truth Social, the president declared his intent to impose a 50% tariff on all imports from the European Union, effective June 1, citing stalled negotiations.
“The European Union has been very difficult to deal with,” Trump wrote. “Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% tariff on the EU.”
Trump also targeted Apple Inc. (AAPL), calling out CEO Tim Cook and warning of a 25% tariff on imported iPhones if the company does not shift manufacturing to the U.S.
“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the U.S. will be manufactured and built in the U.S., not India or anyplace else,” he posted. “If that’s not the case, a tariff of at least 25% must be paid by Apple.”
Markets reacted swiftly. U.S. stock futures reversed early gains, falling nearly 2%, while Apple shares dropped 3.6%. Bitcoin, which had been trading above $111,000 before the announcement, tumbled to $108,600, shedding momentum as investor sentiment turned risk-averse.
