Trump tariff blitz on EU and Apple triggers global market chaos: Stocks sink, dollar slides, gold soars — here’s what you need to know

Trump Tariff Threats Trigger Global Market Sell-Off: Apple, Dollar, and Stocks Take a Hit- Markets took a hard hit on Friday after U.S. President Donald Trump’s tariff threats stirred fears of escalating trade tensions. In a bold move, Trump proposed a 50% tariff on European Union imports starting June 1, and floated the idea of a 25% tax on iPhones made outside the United States. The impact was immediate: stocks slid, the dollar weakened, and investors flocked to safe haven assets like gold and government bonds.

Trump’s new tariffs shake global markets: Stocks drop, dollar weakens, investors flee to safe havens

1. Trump’s announcements

• President Donald Trump announced a 50 percent tariff on all EU imports starting June 1.
  
  
• He also threatened a 25 percent tariff on Apple iPhones made outside the U.S.
  
  
• These moves reignited fears of a global trade war.
  
  

2. Stock markets tumble

• Dow Jones Industrial Average fell by 500 points, down 0.3 percent.
  
  
• S&P 500 dropped 1 percent, hitting a six-month low.
  
  
• Nasdaq Composite declined 2 percent, also reaching a six-month low.
  
  
• Apple stock dropped 2.5 percent after the iPhone tariff threat.
  
  
• France’s CAC 40 index fell 1.8 percent.
  
  
• Germany’s DAX declined 2.3 percent.
  
  
• Japan’s Nikkei 225 fell 4 percent.
  
  
• South Korea’s Kospi dropped 3 percent.
  
  

3. Currency market reaction

• The U.S. dollar index fell 0.8 percent, reaching a six-month low against the Swiss franc.
  
  
• The Japanese yen and Swiss franc gained more than 3 percent against the dollar.
  
  
• The euro rose 0.5 percent to 1.1018 dollars, nearing a six-month high.
  
  

4. Investors move to safe havens

• Gold surged to a record high of 3,160 dollars per ounce, up 20 percent for the year.
  
  
• SPDR Gold Shares ETF (GLD) rose 2.1 percent to 309.58 dollars.
  
  
• U.S. 10-year Treasury yield fell to 4.05 percent, the lowest level since October.
  
  
• iShares 20+ Year Treasury Bond ETF (TLT) gained 0.3 percent to 84.66 dollars.
  
  

5. Broader economic outlook

• Goldman Sachs raised the probability of a U.S. recession in the next year to 35 percent.
  
  
• The tariffs are expected to drive up consumer prices, increasing fears of stagflation.
  
  
• Investors are now anticipating that the Federal Reserve may cut interest rates to offset economic risks.
  
  

6. Latest market data snapshot (as of May 23)

• Apple (AAPL): 195.98 dollars, down 5.38 dollars (2.67 percent), market cap 3.28 trillion.
  
  
• SPDR S&P 500 ETF (SPY): 578.66 dollars, down 4.43 dollars.
  
  
• SPDR Gold Shares (GLD): 309.58 dollars, up 6.47 dollars.
  
  
• iShares 20+ Year Treasury Bond ETF (TLT): 84.66 dollars, up 0.25 dollars.

Why did Trump threaten 50% tariffs on the European Union?

President Trump took to his Truth Social platform, claiming the European Union was “formed to take advantage of the U.S. on trade” and has been “very difficult to deal with.” In response, he proposed a 50% tariff on all EU imports, effective from June 1. This escalated already strained trade relations, and rattled financial markets worldwide.

How did Apple get caught in the tariff storm?

In a surprise twist, Trump also warned of a potential 25% tariff on Apple iPhones that are manufactured outside the United States. This sent Apple’s stock down 2.5% during early trading in New York. Market analysts had believed Apple would avoid such direct hits, but the comment sent a clear signal: no tech company is immune from the trade crossfire.

Oliver Pursche of Wealthspire Advisors remarked, “The market’s reacting more to the Apple tariff talk than the EU news. It shows a tougher stance by the administration rather than a move toward negotiation.”

What happened to the stock markets and the dollar?

U.S. stock indexes dropped across the board.

• Dow Jones lost 284.70 points (-0.68%) to close at 41,576.68
  
  
• S&P 500 dropped 51.16 points (-0.88%) to 5,790.85
  
  
• Nasdaq Composite plunged 221.02 points (-1.17%) to 18,704.71
  
  

Global indexes were also in the red.

• MSCI’s global stock index fell 0.56% to 866.13
  
  
• Pan-European STOXX 600 dropped 1.06%
  
  

The U.S. dollar index, which tracks the dollar against other major currencies, fell 0.46% to 99.45. Against the yen, the dollar slid 0.81%, while the euro gained 0.35%.

Why are gold, bonds, and yen rising again?

Investors often seek safe havens in uncertain times, and Friday was no exception.

• Gold surged 1.47% to $3,342.49 an ounce
  
  
• 30-year U.S. Treasury yields dropped to 5.0468%, down 1.7 basis points
  
  
• 10-year Treasury notes fell to 4.519%, down 3.4 basis points
  
  

European government bonds also gained ground. The buying spree reflects investor concern over Trump’s aggressive trade stance, rising U.S. debt levels, and economic uncertainty following Moody’s downgrade of the U.S. credit rating last week.

Is the U.S. debt situation adding fuel to market fears?

Yes, and it's significant. A newly passed tax cut bill is expected to add nearly $4 trillion to the U.S. federal government’s $36 trillion debt pile. That’s a heavy load for markets to digest, especially when paired with new tariffs and inflation concerns.

Investors are watching this closely, and it’s part of the reason safe assets are now in demand again.

What’s next for oil and other commodities?

Despite the market shakeup, oil prices saw modest gains:

• U.S. crude rose 0.33% to $61.40 a barrel
  
  
• Brent crude climbed 0.22% to $64.58 per barrel
  
  

These gains came as energy traders focused more on supply concerns than immediate market volatility.

Trump’s tariff threats have put global markets on edge. From Apple’s stock dip to the falling dollar and growing demand for gold and bonds, it’s clear that investors are worried. With U.S. debt ballooning and trade tensions rising, this could be just the beginning of more market volatility ahead.

FAQs:

Q1: What did Trump say about iPhone tariffs?
He proposed a 25% tariff on iPhones made outside the U.S., impacting Apple stock.

Q2: How did global markets react to Trump’s EU tariff threat?
Stocks dropped worldwide, the dollar weakened, and investors turned to gold and bonds.