Trigger Global Market Sell-Off: Apple, Dollar, and Stocks Take a Hit- Markets took a hard hit on Friday after U.S. President Donald Trump’s tariff threats stirred fears of escalating trade tensions. In a bold move, Trump proposed a 50% tariff on European Union imports starting June 1, and floated the idea of a 25% tax on iPhones made outside the United States. The impact was immediate: stocks slid, the dollar weakened, and investors flocked to safe haven assets like gold and government bonds.






President Trump took to his Truth Social platform, claiming the European Union was “formed to take advantage of the U.S. on trade” and has been “very difficult to deal with.” In response, he proposed a 50% tariff on all EU imports, effective from June 1. This escalated already strained trade relations, and rattled financial markets worldwide. In a surprise twist, Trump also warned of a potential 25% tariff on Apple iPhones that are manufactured outside the United States. This sent Apple’s stock down 2.5% during early trading in New York. Market analysts had believed Apple would avoid such direct hits, but the comment sent a clear signal: no tech company is immune from the trade crossfire.

Oliver Pursche of Wealthspire Advisors remarked, “The market’s reacting more to the Apple tariff talk than the EU news. It shows a tougher stance by the administration rather than a move toward negotiation.”

U.S. stock indexes dropped across the board. Global indexes were also in the red. The U.S. dollar index, which tracks the dollar against other major currencies, fell 0.46% to 99.45. Against the yen, the dollar slid 0.81%, while the euro gained 0.35%. Investors often seek safe havens in uncertain times, and Friday was no exception. European government bonds also gained ground. The buying spree reflects investor concern over Trump’s aggressive trade stance, rising U.S. debt levels, and economic uncertainty following Moody’s downgrade of the U.S. credit rating last week. Yes, and it's significant. A newly passed tax cut bill is expected to add nearly $4 trillion to the U.S. federal government’s $36 trillion debt pile. That’s a heavy load for markets to digest, especially when paired with new tariffs and inflation concerns.

Investors are watching this closely, and it’s part of the reason safe assets are now in demand again.

Despite the market shakeup, oil prices saw modest gains:

• Brent crude climbed 0.22% to $64.58 per barrel

These gains came as energy traders focused more on supply concerns than immediate market volatility.

Trump’s tariff threats have put global markets on edge. From Apple’s stock dip to the falling dollar and growing demand for gold and bonds, it’s clear that investors are worried. With U.S. debt ballooning and trade tensions rising, this could be just the beginning of more market volatility ahead.

Q1: What did Trump say about iPhone tariffs?
He proposed a 25% tariff on iPhones made outside the U.S., impacting Apple stock.

Q2: How did global markets react to Trump’s EU tariff threat?
Stocks dropped worldwide, the dollar weakened, and investors turned to gold and bonds.