Trump Threatens EU With 50% Tariffs, Takes Aim at Apple; Dow Drops — 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.

U.S. and European stocks 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 Union spokesperson said the bloc wouldn't comment 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:

Major indexes declined as much as 1%.

Apple stock dropped about 2.2%.

Treasury yields declined. Benchmark 10-year yields drifted toward 4.5%; their 30-year equivalents hovered about 5%.

Bitcoin prices edged off records highs. 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%.

Wall Street's "fear gauge," the VIX, surged.

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