Trade Tensions Surge: EU Markets React to Trump's Tariff Threats
European shares fell sharply following U.S. President Trump's tariff threats against the EU and Apple. Markets fear an escalation in the global trade war, leading to significant declines in luxury goods and other sectors. The STOXX 600 marked its biggest one-day fall since early April.
European shares plummeted on Friday after U.S. President Donald Trump heightened tariff threats against the European Union and Apple. This move has reignited concerns about a global trade war and its potential damaging impact.
Trump proposed a 50% tariff on EU goods, including luxury items, pharmaceuticals, and more, starting June 1. He also threatened Apple with a 25% tariff on iPhones sold but not manufactured in the U.S. According to Lindsay James, an investment strategist at Quilter, this could further escalate the global trade conflict and reverse recent market momentum.
The pan-European STOXX 600 index fell 0.9%, logging its first weekly decline in six weeks, while the Euro STOXX Volatility index rose to a three-week high. Economically-sensitive sectors and countries like Germany, whose DAX dropped 1.5%, were notably affected.
(With inputs from agencies.)
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