Topline
Stock futures across all three market indexes fell Friday after President Donald Trump threatened 50% tariffs on the European Union and at least 25% levies on Apple, whose stock was at the forefront of a broader market selloff, unless the company shifts iPhone production to the U.S.
Trump claimed a 25% tariff “must be paid by Apple” unless the company shifted iPhone production to … More
Key Facts
Futures for the Dow Jones Industrial Average fell by more than 500 points, or 1.2%, while Nasdaq futures dropped 1.8% and S&P 500 futures declined by 1.4%.
Shares of Apple decreased by 3.7% to just under $194 in premarket trading, pacing what would be the largest decline for the stock since May 2, when CEO Tim Cook told investors the company expected to take a $900 million hit from tariffs.
Nvidia (down 2.7%) and Tesla (1.5%) were among other stocks that declined early Friday.
Trump wrote on Truth Social Friday a 25% tariff “must be paid by Apple” on iPhones unless the company moves manufacturing of the devices to the U.S., “not India or anyplace else,” as Trump claimed he “long ago informed” Cook about shifting Apple’s production to the U.S.
He also signaled 50% tariffs on the EU starting June 1, claiming the bloc was “taking advantage of the [U.S.] on trade” and had been “very difficult to deal with” in trade negotiations.
European stocks stumbled after Trump’s latest tariff threat, with losses across several automakers, including Mercedes-Benz (4.2%), Porsche (5.1%), Ferrari (0.9%), Stellantis (4.4%), and Volkswagen (3%).
Crucial Quote
“I have long ago informed Tim Cook of Apple that I expected their iPhones that will be sold in the [U.S.] will be manufactured and built in the [U.S.], not India, or anyplace else,” Trump wrote, adding, “If that is not the case, a tariff of at least 25% must be paid by Apple to the U.S.”
Key Background
Trump, who announced wide-reaching tariffs on U.S. trade partners in April, has pushed companies to shift manufacturing to the U.S. or face the costs of his levies. Shortly after Walmart suggested it would raise prices to absorb the cost of Trump’s tariffs, Trump warned the company should “EAT THE TARIFFS” and “not charge valued customers ANYTHING.” Cook—who donated $1 million to Trump’s inauguration fund in January—reportedly met with Trump at the White House earlier this week, though it’s not immediately clear what they discussed. Apple announced in February it would invest more than $500 billion in the U.S. over the next four years, with plans to build a new factory and hire 20,000 more people.
