Wall Street dropped at the open on Friday after U.S. President Donald Trump recommended 50 per cent tariffs on the European Union, while Apple shares slid after he warned the company would have to pay tariffs if its phones were not made in the United States.

The Dow Jones Industrial Average fell 333.4 points, or 0.80 per cent, at the open. The S&P 500 fell 60.1 points, or 1.03 per cent, while the Nasdaq Composite dropped 303.4 points, or 1.60 per cent, at the opening bell.

The president’s renewed trade threats sent the global market roiling after weeks of de-escalation provided some reprieve.

Trump threatened to impose a 25 per cent tariff on Apple for any iPhones sold, but not manufactured, in the U.S. More than 60 million phones are sold in the U.S. annually, but the country has no smartphone manufacturing.

He also said he would recommend a 50 per cent tariff on the European Union to begin on June 1, which would result in stiff levies on luxury items, pharmaceuticals and other goods produced by European manufacturers.

The EU Commission declined to comment, saying it would wait for a phone call between EU trade chief Maros Sefcovic and his U.S. counterpart Jamieson Greer to take place later on Friday.

Trump did not give a timeframe for his warning to Apple.

“I have long ago informed Tim Cook of Apple that I expect their iPhones that will be sold in the United States of America will be manufactured and built in the United States, not India, or anyplace else,” Trump said in a post on Truth Social. “If that is not the case, a Tariff of at least 25 per cent must be paid by Apple to the U.S.”

Article source : Tariff news