Trump's Trade Threats Unsettle Global Markets: Apple and EU in the Crosshairs
U.S. President Donald Trump threatened tariffs on Apple's iPhones not made in the U.S. and a 50% tariff on EU imports, unsettling global markets. The move led to a market sell-off, highlighting ongoing trade tensions and their impact on business confidence.
Donald Trump intensified trade tensions, sending shockwaves across global markets by threatening Apple and the European Union with hefty tariffs. The U.S. President proposed a 25% tariff on iPhones sold in the U.S. but not manufactured domestically, while advocating a 50% levy on the EU, effective June 1.
The announcement caused immediate volatility, with S&P 500 futures dropping 1.5% and Eurostoxx 600 retreating by 2%, as investors recoiled. Apple's shares saw a 3.5% premarket dip, further exacerbating the tech sector's unease. The White House's prior pause on tariffs, aimed at assuaging market fears, was abruptly disrupted by Trump's latest declaration.
Despite negotiations, Trump's tariff threats against strategic partners like the EU portend ongoing trade disputes. The impact was palpable among luxury and automobile sectors, heavily reliant on transatlantic commerce. As financial markets absorb these developments, the reverberations underline the delicate balance of global trade diplomacy.
(With inputs from agencies.)
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