Markets Sink as Trump Unleashes Tariff Threat on EU and Apple
Stock markets on both sides of the Atlantic slumped on Friday after Donald Trump announced plans to impose a sweeping 50% tariff on all European Union exports to the United States, sparking fears of a full-blown transatlantic trade war.
U.S. markets opened sharply lower as investors reacted to the surprise escalation. The S&P 500 dropped 0.9%, the Dow Jones fell 0.8%, and the tech-heavy Nasdaq slid 1.1%, with Apple shares down 2.3% after Trump also threatened tariffs on iPhones assembled in India.
In Europe, the sell-off was equally pronounced. The pan-European Stoxx 600 declined by around 1.2%, Germany’s DAX fell 1.7%, and France’s CAC 40 tumbled 2.2%.
London’s FTSE 100 initially dropped around 1.3% following Trump’s early afternoon announcement, but later recovered some ground, trading 0.5% lower by 3pm.
In a post on Truth Social, Trump accused the EU of being “very difficult to deal with” and said negotiations with Brussels had stalled. He warned that a 50% tariff would take effect from June 1, potentially impacting the full $600 billion (£447 billion) worth of EU goods exported annually to the U.S.
The EU has already prepared a retaliatory package worth €21 billion (£17.6 billion), including tariffs of up to 50% on select U.S. products. These measures could be activated swiftly if Trump follows through.
This latest escalation follows an earlier round of tariffs announced on April 2, dubbed the “Liberation Day” tariffs, which added a 20% EU-specific levy to an existing 10% baseline. Those tariffs were paused for 90 days as both sides entered negotiations — talks that now appear to have broken down.
A European Commission spokesperson declined to comment, stating that Brussels would wait until senior trade officials from both sides had spoken directly.
