Stock Markets Slide Amid Renewed Trade Tensions Fueled by Trump’s Tariff Threats
Global stock markets took a hit Friday as President Donald Trump ramped up trade war rhetoric, targeting Apple and the European Union with new tariff threats. The escalating tensions between the U.S. and its trading partners triggered a dip in major indices, reflecting investor worries over the potential economic fallout.
As of May 23, the Dow Jones Industrial Average dropped 234 points, closing near 41,624, marking a 0.56% decline. The S&P 500 also slipped 0.69% to 5,802, while the Nasdaq Composite — heavily weighted with technology stocks — fell almost 1%, finishing around 18,742.
Apple in the Crosshairs
The latest flare-up began when President Trump publicly warned Apple CEO Tim Cook that iPhones sold in the U.S. must be manufactured domestically — or else the company would face steep tariffs. Trump tweeted that if Apple continues producing devices abroad, it could incur tariffs as high as 25%.
However, relocating iPhone manufacturing to the U.S. could drastically hike production costs, Bloomberg reports, potentially increasing prices by as much as 90%. Such a cost spike could make this shift financially impractical for Apple. Following the announcement, Apple’s stock declined by 2.6%, reflecting investor concerns over the company’s outlook.
Tensions with the European Union
Shortly after addressing Apple, Trump expressed dissatisfaction with ongoing trade negotiations with the European Union. He described talks as “going nowhere” and threatened to impose a 50% tariff on all EU goods entering the U.S. starting June 1, escalating the potential for a wider trade conflict.
Market Concerns and Global Impact
The renewed trade hostility is rattling Wall Street, with investors worried about retaliatory tariffs and the broader disruption to the global economy. Major U.S. corporations, including tech giants like Apple and Tesla, derive a significant portion of their revenue from international markets. Heightened tariffs could hamper their growth prospects and supply chains, compounding economic uncertainty.
As trade tensions mount, market watchers remain cautious, closely monitoring developments that could influence the interconnected world economy in the coming weeks.
