United States benchmark averages declined on Friday after President Donald Trump reignited trade tensions with remarks targeting Apple and recommending a steep tariff on European Union goods.
The market had recently benefited from a pause in trade escalation, but Trump’s comments raised fresh concerns among investors.
The Dow Jones Industrial Average dropped 256 points or 0.6% to close at 41,603.1. The S&P 500 declined 39.2 points or 0.7% to finish at 5,802.8, while the Nasdaq Composite slipped 188.5 points or 1% to 18,737.2.
Apple shares fell 3% following a social media post from Trump, who criticised the tech giant and warned that trade discussions with the European Union were “going nowhere”, recommending “a straight 50% tariff on the European Union, starting on June 1, 2025”.
In contrast, shares of United States Steel soared 21.2% after Trump posted on Truth Social that the company would enter into a “partnership” with Japan’s Nippon Steel.
Over the weekend, President Trump proceeded to withdraw his threat to impose 50% tariffs on European Union goods and agreed to an extension of the June 1 deadline following a phone call with European Commission President Ursula von der Leyen.
Trump’s comments arrive just weeks after tariff tensions had begun to ease. In April, he imposed duties on a wide range of global imports, prompting a market downturn that nearly pushed the S&P 500 into bear market territory.
However, the decision was followed by a 90-day pause and early-stage trade agreements with the U.K. and China, which helped stocks rebound.
The S&P 500 had returned to flat for the year last week but fell back into negative territory by Friday’s close. For the week, the Dow and the Nasdaq dropped 2.5% apiece while the S&P 500 dipped 2.6%.
On the bond markets, yields on the 10-year and 2-year U.S. Treasury notes were at 4.509% and 3.993%, respectively.
