Stocks React to Trump’s Euro Tariff Threat as U.S. Market Sees weekly Loss
U.S. stocks lost their gains on Friday after President Donald Trump’s new tariff threats against the European Union. The Dow Jones plunged over 480 points, and the S&P 500 fell by 1%. Even the tech-heavy Nasdaq Composite was down 1.2%.
This sudden drop comes as talks between the U.S.and EU have stalled. Trump suggested a 50% tariff on EU goods starting June 1, 2025, sparking market fears. He shared this via Truth Social, criticizing the EU for being hard to negotiate with.
While recent deals with the UK and China boosted spirits,rising U.S. deficit concerns have shaken investors. Trump further warned that Apple’s iPhones, if made elsewhere, face a 25% tariff. This adds to market worries.
Consequently, the week is shaping up to be a losing one for Dow, S&P 500, and Nasdaq.The euro and dollar have also dropped. In contrast, gold rose by 1.9% to $3,356.
Bitcoin, despite reaching an all-time high above $111.8k this week, is near $108k, down 2.6%. Investors should watch these developments closely as they may impact their portfolios.
