Trump's Trade Tariffs Shake Global Markets, Dollar Dips
Global markets were unsettled following President Trump's announcement of significant tariffs on EU imports and potential tariffs on Apple iPhones made outside the U.S. Stock indexes and the dollar weakened, and government bonds rose on safe-haven buying amid growing concerns over U.S. debt and trade policies.
Market turbulence ensued after U.S. President Donald Trump announced his latest trade measures, proposing hefty tariffs on European Union imports effective June 1.
The proposed tariffs include a potential 25% on Apple iPhones not manufactured in the U.S., leading Apple shares to dip by 3% during New York trading, and dragging major U.S. stock indexes down, though they remained above session lows. European markets closed lower amid the announcements.
The dollar index decreased by 0.83%, reflecting a 1.5% weekly drop, its most significant since mid-April. Trump's aggressive trade stance, coupled with freshly approved tax cuts, prompted a delicate market atmosphere intensified by downgraded U.S. credit ratings. Consequently, government bonds saw increased demand.
(With inputs from agencies.)
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