Trade Tensions Spike as Wall Street Falters

Wall Street's main indices saw a significant downturn on Friday after U.S. President Donald Trump proposed imposing a 50% tariff on the European Union, raising immediate concerns over trade tensions. Shares of Apple Inc. plummeted as Trump warned that iPhones would face tariffs if manufacturing doesn't return to the U.S.

The President stated on Truth Social that the EU, originally formed to exploit America in trade, has been particularly troublesome. Apple hit a two-week low, dropping 2.5%, after Trump suggested a 25% tariff for iPhones not made in the U.S. The dip is part of broader market turmoil following national trade policy announcements.

Despite acknowledging the potential negotiating tactic behind these announcements, market analysts from Barclays, including Ajay Rajadhyaksha, stressed the increased unpredictability in trade policy. Consequently, major market indices such as the Dow Jones, S&P 500, and Nasdaq recorded substantial losses as volatility spiked and broader market declines ensued. Consumer discretionary and tech stocks were among the biggest losers.

(With inputs from agencies.)