U.S. stock markets turned sharply lower on Friday following fresh tariff threats from President Donald Trump targeting the European Union, reigniting global trade concerns and sending investors fleeing from risk assets.
The Dow Jones Industrial Average dropped over 480 points, while the S&P 500 lost 1% and the Nasdaq Composite fell 1.2% in early trading. The decline erased recent gains fueled by optimism over U.S. deals with the UK and China, and added to a volatile week marked by mounting concerns over the U.S. deficit and faltering trade negotiations.
“The European Union, which was formed for the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with,” Trump wrote on Truth Social. “Therefore, I am recommending a straight 50% tariff on the European Union, starting June 1, 2025.”
He added that there would be no tariff if products are built or manufactured in the U.S. The president also warned that Apple could face a 25% tariff on iPhones made outside the U.S., a move that could heavily impact the tech sector and further sour investor sentiment.
Markets Rattled by Renewed Trade Fears
Global equities have been under pressure in recent sessions, and Trump’s tariff proposal brought the focus sharply back to trade tensions, just as attention had been shifting toward domestic economic policy and deficit fears. Now, investors are pricing in the potential for a broader U.S.-EU trade war that could hurt corporate earnings and global supply chains.
“Trump’s proposed tariffs are reigniting the exact concerns that rattled markets in 2018 and 2019,” said one Wall Street strategist. “The fact that Apple is also being mentioned sends a chilling message to tech investors.”
Commodities and Crypto React
Gold rose 1.9% to $3,356, as traders rushed to safe-haven assets. Meanwhile, Bitcoin (BTC) fell 2.6% to around $108,000, despite reaching an all-time high above $111.8K earlier in the week. The pullback reflects broader market risk aversion, with crypto assets seen as vulnerable to tightening global conditions and investor profit-taking.
The Euro and U.S. Dollar also weakened, suggesting broader uncertainty in the foreign exchange markets as investors brace for fallout from escalating U.S.-EU tensions.
With the Dow, S&P 500, and Nasdaq all on track to end the week in the red, analysts are closely watching for any response from the European Union, as well as further clarification from the White House on the proposed tariffs.
Stay tuned with TheCoinInfo for ongoing updates on market impact, trade policy, and crypto sector reactions.
