Market Tensions Rise as Trump intensifies Trade Threats
Global stock markets are facing pressure due to rising U.S. trade tensions. On May 23, the Dow Jones dropped 0.56%, falling to 41,624 points. The S&P 500 also dipped 0.69%,while the tech-focused Nasdaq lost 0.97%.These declines follow President Donald Trump’s new threats of tariffs.
Trump has renewed his demands on Apple, insisting the company manufacture iPhones in the U.S. He warned that a 25% tariff would apply if Apple continues production in India or elsewhere. this move would significantly increase phone costs, which Bloomberg estimates could rise by up to 90%. Consequently, Apple’s stock fell by 2.6%.
Moreover, Trump expressed dissatisfaction with EU trade talks, calling them unproductive. He threatened a 50% tariff on all EU imports starting June 1. This escalates the ongoing trade war, causing Wall Street’s unease. The retaliatory measures by other nations could disrupt the global economy. Companies like Apple and Tesla, which rely heavily on international markets, may suffer.
These developments highlight the fragility of the global economic interconnections. The ongoing tensions pose critically important challenges for major U.S. businesses and the broader market outlook.
