Global Markets React to TrumpS Trade Threats
Stock markets are feeling the heat as President Trump ramps up his trade rhetoric. On May 23, the Dow jones dropped 0.56%, closing at 41,624 points. The S&P 500 and Nasdaq also took a hit, down 0.69% and 0.97%,respectively. This downturn stems from Trump’s latest tariff threats.
Trump is pressuring Apple and the EU to comply with his demands. He warned Apple to manufacture iPhones in the U.S. or face a 25% tariff. This move could hike iPhone prices by up to 90%, making U.S. production unlikely.Consequently, Apple’s stock fell by 2.6%. The tech giant currently makes iPhones in India and elsewhere, keeping costs low. A shift to U.S. manufacturing would substantially increase prices.
Trump’s tweet to CEO tim Cook highlights the tension.
Meanwhile,trump’s frustration with EU trade talks led to a 50% tariff threat on EU goods,starting June 1.This could disrupt the global economy, as many U.S. firms, like Tesla, rely on foreign markets.
These actions have Wall Street on edge. The potential for retaliatory measures by other countries adds to the uncertainty. The interconnected global economy faces a notable challenge.
