Apple share prices on Friday fell 4% to hit a low of $193.46 reacting to US President Donald Trump's threat that his government would impose a new 25% levy against the iPhone maker if the handsets sold in the US are made elsewhere.
Trump also ratcheted up the US trade war further saying that a 50% tariff on the European Union would also be slapped, lamenting that negotiations with the EU "are going nowhere,". Trump on Truth Social said that he is recommending "a straight 50% Tariff on the European Union, starting on June 1, 2025."
The announcement sparked a sell-off on Wall Street with Dow 30 declining by 0.94% or 391.47 points to 41,467.60 in the initial trade. S&P 500 also fell by 64.68 points and 1.11% around 10:15 AM ET and traded at 5,777.33. Nasdaq Composite was the worst hit at 18,663.90, falling by 261.83 points or 1.38%.
Other major stocks like Microsoft Corporation, NVIDIA Corporation, Amazon, Alphabet and Meta were also down by up to 2%.
If the new duties come into effect, they would dramatically hike the current US baseline levy of 10 percent, and raise economic tensions between the world's biggest economy and its largest trading bloc, a Reuters report said.
In a separate message, the president said Apple had failed to move iPhone production to the United States despite his repeated requests, and he threatened new duties of "at least" 25 percent if they did not comply.
The VIX volatility index, known as Wall Street's "fear gauge," was up 18.5 % at around 9:30 am local time in New York.
Trump had to pause reciprocal tariffs on April 9, following a week into its implementation on April 2 which he referred to as the 'Liberation Day'. Prior to this, he had imposed a 25% tariff of steel and aluminium imports.
The Trump administration is in discussions with more than a dozen governments, including the European Union, in an effort to forge trade agreements before global tariffs are reinstated in early July.
On May 12, both the US and China arrived at an agreement on tariffs and paused tit-for-tat tariffs for 90 days.
Notwithstanding this, some foreign officials have expressed concern that the US has not clearly outlined its demands, making them reluctant to offer major concessions amid fears that President Trump could reimpose tariffs unpredictably.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
Trump also ratcheted up the US trade war further saying that a 50% tariff on the European Union would also be slapped, lamenting that negotiations with the EU "are going nowhere,". Trump on Truth Social said that he is recommending "a straight 50% Tariff on the European Union, starting on June 1, 2025."
The announcement sparked a sell-off on Wall Street with Dow 30 declining by 0.94% or 391.47 points to 41,467.60 in the initial trade. S&P 500 also fell by 64.68 points and 1.11% around 10:15 AM ET and traded at 5,777.33. Nasdaq Composite was the worst hit at 18,663.90, falling by 261.83 points or 1.38%.
Other major stocks like Microsoft Corporation, NVIDIA Corporation, Amazon, Alphabet and Meta were also down by up to 2%.
If the new duties come into effect, they would dramatically hike the current US baseline levy of 10 percent, and raise economic tensions between the world's biggest economy and its largest trading bloc, a Reuters report said.
In a separate message, the president said Apple had failed to move iPhone production to the United States despite his repeated requests, and he threatened new duties of "at least" 25 percent if they did not comply.
The VIX volatility index, known as Wall Street's "fear gauge," was up 18.5 % at around 9:30 am local time in New York.
Trump had to pause reciprocal tariffs on April 9, following a week into its implementation on April 2 which he referred to as the 'Liberation Day'. Prior to this, he had imposed a 25% tariff of steel and aluminium imports.
The Trump administration is in discussions with more than a dozen governments, including the European Union, in an effort to forge trade agreements before global tariffs are reinstated in early July.
On May 12, both the US and China arrived at an agreement on tariffs and paused tit-for-tat tariffs for 90 days.
Notwithstanding this, some foreign officials have expressed concern that the US has not clearly outlined its demands, making them reluctant to offer major concessions amid fears that President Trump could reimpose tariffs unpredictably.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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