Global financial markets experienced severe drops today after former President Donald Trump revealed plans for significant tariffs against both the European Union and Apple Inc, prompting fears of renewed trade conflict.
Trump suggested in a post to his social media platform Truth Social that starting June 1, a 50% tariff be imposed on imports from European Union countries due to ongoing trade imbalances and failed negotiations. Furthermore, he threatened a 25% tariff against iPhones manufactured outside the US with production being relocated back home.
U.S. stock futures experienced an immediate and severe reaction, plunging more than 600 points (about 1.4%), S&P 500 futures falling 1.5% and Nasdaq futures declining by 1.8% respectively – Apple shares dropped almost 4% premarket trading, leading a wider downturn across technology stocks.
European markets were similarly affected, with major indices across Europe posting losses exceeding 2%. Meanwhile, the euro was weak against the dollar and gold prices surged as investors sought safe-haven assets amid escalated trade tensions.
Retailers that rely heavily on imported goods also saw investors scrutinizing them closely. Ross Stores and Deckers Outdoor Corporation both withdrew their full-year financial forecasts due to uncertainty around proposed tariffs; Ross Stores saw its stock decrease 13% while Deckers Outdoor saw 15% declines in share value.
The European Commission has yet to respond in full but is reported as planning talks with U.S. trade officials over proposed tariffs, with analysts warning them of potential disruption of global supply chains and inflationary pressures, possibly inhibiting economic growth.
As markets respond to these developments, investors are encouraged to closely observe them for potential ramifications on international trade relations and global economic stability.
This story will be updated as new information becomes available.