Apple Shares Plunge Amid Trump's Threats to Impose Tariffs

Strategic Insights -

US President Donald Trump's comments on Thursday sent shockwaves through the market, with Apple's shares falling 4% to a low of $193.46. Trump threatened to impose a 25% tariff on devices manufactured outside the US, as part of a broader warning to the European Union to renegotiate trade agreements. The warning, made on Trump's Truth Social platform, also proposed a 50% tariff on goods from the EU, effective June 1, 2025. This move is part of an ongoing escalation of trade tensions, with major technology stocks also registering losses.

Key Takeaways:

  • Apple's shares plummeted 4% to a low of $193.46 on Friday, following President Trump's threat to impose a 25% tariff on devices manufactured outside the US.
  • The proposed tariffs, which would significantly elevate the current 10% levy on imported products, would intensify economic frictions between the US and the EU, its largest trading partner.
  • Major technology stocks including Microsoft, NVIDIA, Amazon, Alphabet, and Meta registered losses of up to 2% in early trade.
  • The Trump administration's threat of tariffs has created market anxiety, with the VIX volatility index spiking by 18.5% around 9:30 a.m. in New York.
  • The US and the EU have ongoing trade talks, with the US agreeing to a 90-day pause on tit-for-tat tariff measures with Beijing on May 12.
  • Foreign officials remain cautious, citing a lack of clarity from the US on its demands and concerns that Trump could unpredictably reinstate tariffs, undermining negotiations.

Statistics:

  • Apple's shares fell 4% to a low of $193.46 on Friday.
  • The VIX volatility index spiked by 18.5% around 9:30 a.m.
  • Major technology stocks, including Microsoft, NVIDIA, Amazon, Alphabet, and Meta, registered losses of up to 2% in early trade.
  • The proposed 50% tariff on goods from the EU, effective June 1, 2025.
  • The US has agreed to a 90-day pause on tit-for-tat tariff measures with Beijing on May 12.
  • The US and the EU have ongoing trade talks, with the US seeking to renegotiate trade agreements.

Sources:

  • timesofisrael.com
  • Reuters Report:

"US President Donald Trump threatens tariffs on EU goods, sparking market anxiety." (No date)

  • Trump's Truth Social platform:

"I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025." (No date)

  • CNBC Report:

"Trump threatens tariffs on EU goods, market anxiety spikes." (No date)