Key points
- Trump labels the EU “difficult to deal with”
- Apple shares knocked by direct new tariff threat
- Shares of Apple ended 3 per cent lower
ISLAMABAD: Major stock indexes and the dollar eased on Friday after US President Donald Trump unleashed his latest trade threats, recommending 50 per cent tariffs on European Union imports from June 1.
Shares of Apple ended 3 per cent lower, while the three major US stock indexes finished weaker but off session lows. According to Reuters, European shares also ended lower.
The dollar index, which measures the greenback against a basket of currencies, hit a three-week trough. For the week, the dollar was down 1.9 per cent, on track for its biggest weekly percentage decline since early April, the British news agency reported.
The dollar sank 1 per cent versus the Japanese yen, while the euro rose 0.8 per cent against the dollar.
“Discussions going nowhere”
“Our discussions with them are going nowhere! Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” Trump wrote on social media.
In a post on Truth Social, Trump reiterated his criticism of the EU, saying that the bloc, which “was formed for the primary purpose of taking advantage of the United States on TRADE, has been very difficult to deal with.”
DW reported that he also complained about the EU’s “powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more.”
Stock markets fell as the Republican’s comments fuelled fears of global economic disruption, after a relative lull in recent days after Trump reached deals with China and Britain.
Trump first raised the issue of EU tariffs in an early morning post on his Truth Social network.
He doubled down later in the day, telling reporters in the Oval Office that there was nothing the 27-nation bloc could do to change his mind.
“They’re not hurting”
“I’m not looking for a deal. I mean, we’ve set the deal. It’s at 50 per cent,” Trump said. “They haven’t treated our country properly. They banded together to take advantage of us.”
Billionaire property tycoon Trump, 78, also denied that his tariffs would hurt American businesses.
“They’re not hurting, they’re helping,” he said.
Trump’s new tariffs would, if imposed, dramatically raise Washington’s current baseline levy of 10 per cent, and fuel simmering tensions between the world’s biggest economy and its largest trading bloc.
“Respect, not threats”
The EU’s trade chief said the bloc would work for a trade deal with Washington based on “respect, not “threats.”
Spoke w @jamiesongreer & @howardlutnick. The EU’s fully engaged, committed to securing a deal that works for both. @EU_Commission remains ready to work in good faith. EU-US trade is unmatched & must be guided by mutual respect, not threats. We stand ready to defend our interests. pic.twitter.com/RfIo5K4aus
— Maroš Šefčovič🇪🇺 (@MarosSefcovic) May 23, 2025
“The EU’s fully engaged, committed to securing a deal that works for both,” trade commissioner Maros Sefcovic posted on X, after a previously planned call with US Trade Representative Jamieson Greer and Commerce Secretary Howard Lutnick.
In a separate message posted Friday that also unnerved markets, Trump blasted Apple boss Tim Cook for failing to move iPhone production to the United States despite repeated requests.
