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Stock futures dropped significantly Friday (May 23) morning after President Donald Trump made new tariff threats against the European Union and Apple, the New York Post reports.
The Dow Jones futures were down by more than 600 points, a 1.4% drop, while the Nasdaq was down nearly 400 points, equivalent to 1.8%, prior to the opening bell on Wall Street. The market trends came after Trump threatened to impose a 50% tariff on goods from the European Union if "a fair deal" for American manufacturers couldn't be delivered during ongoing trade negotiations.
"The European Union, which was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with," Trump wrote on his Truth Social account. "Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against American Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable. Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025. There is no Tariff if the product is built or manufactured in the United States. Thank you for your attention to this matter!"
Trump also claimed foreign-made iPhones would soon be subject to at least 25% tariffs.
“I have long ago informed Tim Cook of Apple that I expect their iPhone’s that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump wrote in a separate post. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the US. Thank you for your attention to this matter!”
Apple was among the tech companies to experience the biggest losses, falling 4%, following Trump's threat.