#TrumpTariffs

Global Markets Tumble as Trump Proposes 50% EU Tariff

May 25, 2025 – Former U.S. President Donald Trump announced on May 23 a 50% tariff on all European Union (EU) imports, effective June 1, sparking global market volatility and fears of a renewed trade war.

📉 Markets React Sharply

U.S. indices fell immediately:

S&P 500: -0.7% (day), -2.5% (week)

Nasdaq: -1%

Dow Jones: -0.6%

In Europe, the Stoxx 600 dropped 1.5%, while Germany’s DAX fell 2.3%, with export-heavy sectors like automotive and luxury goods seeing losses above 3%.

💱 Currency & Bonds

The euro weakened against the dollar, and investors fled to safety, pushing up government bond prices globally.

📦 Sector Impact

Apple shares fell 2.6% after a potential 25% tariff on foreign-made iPhones.

European luxury brands dropped sharply, fearing decreased U.S. demand.

German automakers like BMW and Volkswagen suffered steep declines.

🌍 EU Response

Brussels condemned the move as “economic coercion” and warned of retaliatory tariffs on U.S. goods, including agriculture and tech.

📊 Outlook

Markets remain tense as both sides weigh their next steps. With global trade stability at risk, investors brace for further disruptions and uncertainty.