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Stocks Plunge as Trump Threatens 50% Tariffs on EU

Strategic Insights

— 1 min read

U.S. stocks took a sharp nosedive on Friday after President Donald Trump announced plans to impose 50% tariffs on the European Union, sparking fears of a global trade war. The Dow Jones Industrial Average sank 0.6%, the Nasdaq composite plummeted 1%, and the S&P 500 lost 0.7% in the worst week in seven. Trump's threat was made after trade talks with the EU "went nowhere," with tariffs potentially starting as early as June 1. The EU is one of the US's largest trading partners.

Key Takeaways:

  • The S&P 500 lost 0.7% on Friday, marking the worst week in seven, with a $156.8 billion decline in market value.
  • The Dow Jones Industrial Average dropped 0.6%, while the Nasdaq composite sank 1%, with Apple's stock plunging 2.9% after Trump specifically targeted the company.
  • President Trump threatened 50% tariffs on the EU, stating trade talks "went nowhere" and that "straight 50% tariffs could go into effect on June 1."
  • Deckers Outdoor, the company behind Hoka and Uggs brands, became one of the latest companies to announce it won't offer financial forecasts for the full year, citing the uncertainty created by tariffs.
  • Intuit, the company behind TurboTax and Credit Karma, was an exception, with its stock rising 8.8% after reporting a stronger profit for the latest quarter and raising its forecasts for revenue and profit over its full fiscal year.
  • The Treasury yield on the 10-year bond fell to 4.51% from 4.54% late Thursday, as investors sought safer assets amid the market volatility.

Statistics:

  • The Dow Jones Industrial Average dropped 137 points, or 0.6%, with an hour remaining in trading.
  • Apple's stock plunged 2.9% after Trump targeted the company specifically.
  • The Nasdaq composite sank 1% lower, with a $43.9 billion decline in market value.
  • The Treasury yield on the 10-year bond fell to 4.51% from 4.54% late Thursday.
  • Intuit's stock rose 8.8% after reporting a stronger profit for the latest quarter and raising its forecasts for revenue and profit.

Sources:

  • Associated Press article titled "Stocks fall after Trump threatens EU tariffs" (no publication date available)
  • Trump's Truth Social platform post
  • S&P 500 and Dow Jones Industrial Average quotes ( exact date and time unavailable)
  • Treasury Department yield curve (exact date and time unavailable)
  • Intuit's quarterly earnings report (exact date and time unavailable)

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