President $TRUMP Threatens Major Tariffs on EU Imports and Apple iPhones; Bitcoin, Stocks React Sharply
In a dramatic move early Friday, President Donald Trump threatened to impose a 50% tariff on all European Union imports and a 25% levy on Apple iPhones not manufactured in the U.S. The announcement sparked immediate market volatility, shaking up what was expected to be a quiet trading session ahead of the holiday weekend.
Bitcoin $BTC and Stock Markets Drop After Trade Tension Escalation
Risk assets, including bitcoin, saw steep declines during early U.S. trading hours. Bitcoin, which had been trading above $111,000, quickly fell by approximately 2.5%, settling around $108,600 following the tariff announcement.
Trump Targets EU and Apple Over Trade Disputes
President Trump, via a Truth Social post, criticised the European Union for being "very difficult to deal with" and stated that negotiations with the EU were "going nowhere." As a result, he proposed a direct 50% import tariff on all goods from the EU, effective June 1.
In addition, Trump singled out Apple Inc. (AAPL) and CEO Tim Cook, demanding that iPhones sold in the U.S. must be manufactured domestically. "If that's not the case," Trump stated, "a 25% tariff will apply to all foreign-manufactured iPhones."
Market Reaction: Apple Shares Drop, Futures Reverse Gains
U.S. stock index futures, which had been showing modest gains, reversed course and dropped nearly 2%. Apple stock fell 3.6%, reflecting investor concern over potential cost increases and supply chain disruptions.