Stock futures dipped Friday morning following President Donald Trump’s latest tariff threats against the European Union and Apple, reviving concerns over global trade tensions and unsettling investors.
Dow futures dropped by more than 600 points, which translates to over 1.4%, while Nasdaq futures fell about 1.8%, nearly 400 points, just before the opening of Wall Street as the Memorial Day weekend approaches.
In a comment regarding the True Society, Trump warned that if trade negotiations do not yield “fair trade” outcomes for American manufacturers, he plans to impose a 50% tariff on EU goods shortly.
He also took aim at Apple specifically, indicating that iPhones manufactured overseas might soon face at least a 25% tariff.
“I notified Tim Cook a while back that I expect iPhones sold in the United States to be made in the U.S., not in India or other countries,” Trump stated. “If that doesn’t happen, expect to pay at least 25% in customs duties on Apple products in the U.S. Thanks for understanding this issue.”
Apple’s stock led the tech sector decline, falling 4%, while Benchmark Treasury yields decreased as investors sought safer assets.
Gold prices saw an uptick of nearly 1%, marking the largest weekly gain in over a month.
The currency market also felt the shift, with the dollar slipping against most major currencies, leading to a significant fall in the WSJ Dollar Index.
Apple has primarily assembled iPhones in China and, to some extent, in India, but it currently has no smartphone manufacturing in the U.S. Although the company has made a commitment to increase domestic jobs and invest billions, its supply chain remains predominantly overseas.
Apple did not provide immediate comments on the matter.
This threat comes amidst an already strained relationship between Washington and Brussels.
Senior officials from the U.S. and EU were set to meet on Friday to evaluate the state of trade negotiations, and Trump’s tariff warnings could further complicate the discussions.
Additionally, a gathering of seven finance ministers and central bankers wrapped up with a non-committal statement regarding trade that notably avoided mentioning tariffs.
Treasury Secretary Scott Bescent participated in the three-day summit but did not share much insight about the administration’s strategies publicly.
