Stock markets in Europe and the United States dropped on Friday after President Trump threatened the European Union and Apple with steep tariffs.
The pan-European Stoxx 600 index fell more than 1.5 percent in early afternoon trading, with shares of carmakers, banks and tech companies among the hardest hit. Futures for the S&P 500 slumped 1.5 percent, implying a tumultuous open for trading in New York.
Apple’s stock dropped more than 3 percent in premarket trading.
On Friday morning, President Trump wrote on social media that trade negotiations with the European Union were “going nowhere” and called for a 50 percent tariff on all goods imported from the bloc starting June 1.
“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,” Mr. Trump wrote on Truth Social.
In a separate post, he said that he wanted iPhones sold in the United States to also be made in the country. “If that is not the case, a Tariff of at least 25% must be paid by Apple to the U.S.,” he said.
The S&P 500, the benchmark stock index in the U.S., was already on track for its worst week since the beginning of April, when Mr. Trump announced so-called reciprocal tariffs on dozens of countries. After he paused those tariffs for 90 days to give time for negotiations, the market turmoil eased somewhat, but traders have remained jittery.
This week, the Trump administration’s bill to cut taxes raised concerns about U.S. debt levels, keeping markets on edge.
U.S. government bond yields, which had been rising in recent weeks on worries over debt and deficits, reversed course and fell because of fears about the economic effects of an escalating trade war. The yield on 10-year Treasury notes fell to 4.47 percent.
Eshe Nelson is a Times reporter based in London, covering economics and business news.
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