US stocks fell sharply Friday after President Donald Trump threatened to impose steep new tariffs on the European Union, reigniting fears of a global trade war and rattling markets on both sides of the Atlantic.The S&P 500 slipped 0.4% in afternoon trading, positioning the benchmark index for its worst weekly performance in nearly two months. The Dow Jones Industrial Average dropped 132 points, or 0.3%, while the tech-heavy Nasdaq composite shed 0.6%, AFP reported.Trump, posting on his Truth Social platform before markets opened, said trade talks with the EU were stalling and warned that "straight 50%" tariffs could take effect as soon as June 1.

The EU is among the US's largest trading partners, and the announcement sent shockwaves through global markets.European stocks took an immediate hit, with France’s CAC 40 plunging 1.7%. US markets opened lower in response, and losses deepened as the day progressed. Around 60% of stocks in the S&P 500 traded in the red.Tech giant Apple fell 2.6% after Trump singled it out, saying he's urged CEO Tim Cook to relocate iPhone production to the US Trump threatened that Apple would face tariffs of "at least 25%" on its products if it didn’t comply.

Trump has a history of calling out companies directly when frustrated with trade negotiations. Walmart previously drew his ire after saying tariffs would likely lead to higher prices for consumers. Trump responded that Walmart and China should "eat the tariffs."The uncertainty surrounding trade policy also prompted major retailers to revise their financial guidance. Deckers Outdoor, the parent of Hoka and Uggs, plunged 19.6% after it withheld full-year guidance, citing economic unpredictability, despite posting better-than-expected quarterly earnings.Ross Stores also removed its full-year forecast, with its CEO warning that continued high tariffs would hurt profitability, given that over half of the retailer's goods come from China. Its stock dropped 11.1% even after beating earnings estimates for the quarter.“The volatility of trade policies and the corresponding impact on the economy, the consumer, and our profitability is highly unpredictable,” said Ross CEO Jim Conroy.Amid the turmoil, there were a few bright spots. Intuit jumped 8.4% after reporting robust earnings, helped by a strong tax season. The TurboTax and Credit Karma parent also raised its outlook for the year.The bond market reflected investor unease. Yields on the 10-year Treasury note slipped to 4.51% from 4.54% the previous day, as investors sought safety. Earlier in the week, yields had risen amid concerns that tax cuts in Washington would balloon the national debt.Higher yields typically dampen demand for stocks by increasing borrowing costs and offering more attractive returns on safer investments.Global markets showed mixed reactions. Asian indexes closed before Trump’s tariff announcement, with Tokyo’s Nikkei 225 gaining 0.5% and Shanghai’s market declining by 0.9%.Meanwhile, gold prices jumped 2.1% as investors flocked to safer assets in the face of renewed trade tensions.Wall Street had recently rebounded close to its all-time highs after earlier losses tied to trade fears. The S&P 500 had been down as much as 20% from its record before recovering amid signs of easing tensions—until now.