Trump Threatens EU With 50% Tariffs, Takes Aim at Apple; Dow Opens Lower — WSJ
By Joe Wallace
President Trump launched new broadsides in his tariff campaign, threatening to impose a 50% rate on the European Union within days, and warning Apple that foreign-made iPhones could face significant levies.
The fresh threats are aimed at core pillars of global commerce: one of the world's most valuable companies and one of the U.S.'s biggest trading partners. The initial market response reflected revived fears that tariff policy could knock economic growth.
Stocks, bank shares and oil prices fell. Investors sought shelter in government bonds and haven currencies such as the Swiss franc and Japanese yen, weighing on the dollar. Gold prices rallied.
Senior U.S. and EU trade officials have a prearranged call at 11:30 a.m. ET. A European spokesperson said the bloc wouldn't comments on Trump's latest threat before then.
G-7 finance and central bank chiefs issued a vague statement Thursday that made no mention of levies, and only one mention of "trade," after a summit that featured both Treasury Secretary Scott Bessent and EU representation.
Friday's drop in Treasury yields pared a recent runup that had been fueled by anxiety over the U.S. fiscal outlook. Trump's tax-and-spending bill, which helped stoke those concerns, is now headed for the Senate.
In recent trading:
The Dow industrials and S&P 500 fell roughly 1%, while the tech-heavy Nasdaq Composite dropped 1.6%.
Treasury yields declined. Benchmark 10-year yields drifted under 4.5%; their 30-year equivalents hovered around 5%.
Bitcoin prices held near records, after hitting a new intraday high Thursday. Trump held a gala dinner late Thursday with the biggest holders of his meme coin. Meantime, the biggest U.S. banks are exploring whether to issue a joint stablecoin.
Gold futures jumped more than 1.5%.
The CBOE Volatility Index, known as Wall Street's "fear gauge," rose to about 25, from 20.28 on Thursday.
Coming up:
Federal Reserve governor Lisa Cook is due to speak at noon.
Monday is Memorial Day; stock and bond markets will be closed.
Write to Joe Wallace at joe.wallace@wsj.com