The GuardianBoth are reporting similar developments.
Donald Trump has issued plans to impose major tariffs on European Union imports and Apple products, intensifying trade tensions and sparking immediate market reactions.
Trump announced in a post on his social media platform Truth Social that he intends to implement a 50% tariff on goods imported from Europe starting June 1. He cited stalled trade negotiations and what he views as unfair trade practices by the EU as reason. Sky News +6 The Times +6
Trump took aim at tech giant Apple, proposing a 25% tariff on iPhones manufactured outside the U.S. He stressed the need for Apple to produce domestically in order to sidestep these tariffs, according to Axios, The Washington Post, and KOCO News.
These announcements had immediate and profound repercussions for financial markets. U.S. stock futures fell sharply following this news, with Dow Jones Industrial Average futures losing over 600 points (1.4%) and Nasdaq futures declining 1.8% (nearly 400 points). Apple shares fell by 4.0% leading broader tech sector losses – as reported in both The Guardian and New York Post (+1).
These developments come amid ongoing U.S.-EU trade talks and follow the conclusion of the G7 finance summit, which offered minimal commentary on trade issues. Proposed tariffs threaten to further disrupt these negotiations as well as industry stability.
Apple, which produces most of its iPhones in China and has also expanded production to India, currently lacks a manufacturing presence in America. While they have pledged to increase domestic hiring and invest billions in stateside facilities, their supply chain still relies heavily on overseas suppliers.
New York Post
The European Commission has yet to make an official comment pending their call with U.S. Trade Chief Robert Lighthizer; however, they have previously shown an eagerness to discuss ways of strengthening trade ties, particularly those related to energy sector cooperation.
The Guardian/+1 The Indian Express
As events unfold, investors and international partners will closely observe any decisions taken by the U.S. administration as they could have significant ramifications on global trade dynamics.
This story will be updated as more information becomes available.