Wall Street markets fell sharply after President Trump Tariff made known his plan for major tariffs on Apple products and from the EU. The decision to remove China from the list of negotiating parties brought an end to several weeks of quiet talks. All major indexes on Wall Street closed lower on Friday. It finished the day 0.6 percent lower, closing at 41,603 points after falling more than 200 points. During the same time, the S&P 500 lost 0.7 percent to reach 5,802 points.

Key-Takeaways:

• Trade worries rose again as Trump said he might impose 50% tariffs on EU goods and 25% on Apple products, sending Dow down by more than 200 points.
• Apple’s stock fell 3% when tariff threats were made, and other smartphone brands, such as Samsung, were also targeted.
• China applies lower tariffs than the EU, and stocks for luxury items and cars are leading the decline in the European stock market.
• Trump’s strong words stand in clear contrast to the good relations developed between the United States, Britain, and China before.

Market Reaction Shows Investor Concern

Most technology-related stocks saw big losses, with Apple shares falling 3 percent. Direct threats were presented to the tech giant by Trump’s proposed tariffs. That same hour, the Nasdaq had the largest decline, dropping 1.0 percent.

He said that starting June 1, the EU will have to pay an astonishing 50 percent tariff on its imports to the US. This rate goes well beyond what is charged on Chinese imports. When the news came, European markets responded right away.

Both Paris and Frankfurt markets ended the day down 1.5 percent due to sharp declines in luxury and automotive companies. The FTSE 100 began to rise in London before ending the day down. German stocks began the trading day strongly after new economic growth data was issued.

Apple Becomes Specific Target

President Trump specifically named Apple, saying it could face 25 percent tariffs on iPhones. Trump insisted that the company build its products inside the United States. The way it is used, this strategy focuses on a particular company instead of all companies in a sector.

Later on, Trump said he would charge taxes on imports from all smartphone makers as well. Samsung is now in the same position as other mobile makers facing hefty tariffs. After the announcement, the tech industry sold off immediately.

Trade Policy Shifts Direction

These announcements are a big step backwards from the recent progress seen in diplomacy. Before, Trump reached an accord with Britain and struck an agreement with China. It now appears that EU negotiations have hit a total standstill.

Experts in investment said that the proposed tariffs would serve as significant fines. She said that EU goods would be subject to higher taxes than goods from China. A few weeks ago, this seemed like something impossible.

Currency and Commodity Markets React

The strength of the dollar dropped against key international currencies as tariff-related worries rose. The Euro rose to $1.1369 on Friday, compared to $1.1281 the previous day. British pound advanced due to the weakness seen in the dollar.

Oil bounced back from lows earlier in the day to finish just a little higher. Brent crude was up 0.5 percent at $64.78 per barrel. The same benefited West Texas Intermediate as well.

He is still applying 10 percent tariffs on most goods brought in from other countries. He is also maintaining duties of 25 percent on cars, steel and aluminum. These actions make a big difference for the 27-nation European group.

The president declared last month that EU goods entering the United States would have a 20 percent tariff. However, he ordered the withdrawn measures to make negotiation easier. Further talks now seem to be getting nowhere.

Conclusion: Trump Tariff

Researchers are worried that the continuous trade disputes among top economies have become a concern, especially because Trump has difficult ties with European leaders and hopes of a success have diminished. Stock markets steadied after US debt rose, but now investors are mainly concerned about trade. Given the timing of the tariff news, many investors are getting ready for a possible rise in trade disputes.