Stock Market Sinks After Trump Threatens Tariffs on Apple, EU
Stock markets were down at the opening bell on Friday after President Donald Trump said he wanted to impose a 50-percent tariff on the European Union and a new 25-percent tariff on iPhone maker Apple.
The S&P 500 was down around 1.1 percent, the Nasdaq Composite down 1.6 percent, and the Dow Jones Industrial Average by just under one percent minutes after markets opened.
Apple stock, meanwhile, fell 2.6 percent in early trading Friday.
Less than an hour before markets opened, Trump complained that the EU had been “very difficult to deal with” in a post to Truth Social, and described the current U.S. trade deficit with them as “totally unacceptable.” The president said that the trade deficit had grown to “more than $250,000,000 a year,” higher than the official figure provided by the Office of the U.S. Trade Representative for 2024 – $235.6 billion.
Traders work on the floor of the New York Stock Exchange (NYSE) on May 19, 2025 in New York City.
Spencer Platt/Getty Images
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.” He added that there will be no tariff for products “built or manufactured in the United States.”
A spokesperson for the European Commission told Newsweek it would not be commenting until after a scheduled call later on Friday between trade officials.
Trump hit the EU with a 20 percent tariff during his “Liberation Day” speech on April 2, but lowered this to the baseline rate of 10-percent days later.
European stocks plunged following Trump’s announcement. The Euro Stoxx 50 is down around 2.9 percent, while the Stoxx Europe has fallen by roughly 1.9 percent as of 9:35 ET.
Prior to this, the president warned Apple CEO Tim Cook that, should the company fail to build its iPhones in the U.S., it will be subject to its own 25-percent tariff.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S. Thank your for your attention to this matter!”
Newsweek has reached out to Apple for comment.
This is a breaking story with updates to follow.