By Joe Wallace
President Trump launched new broadsides in his tariff campaign, threatening to impose a 50% rate on the European Union within days, and warning Apple that foreign-made iPhones could face significant levies.
The fresh tariff threats are aimed at core pillars of global commerce: one of the world's most valuable companies and one of the U.S.'s biggest trading partners. The initial market response reflected revived fears that tariff policy could drive economic growth sharply lower.
Stock futures, bank shares and oil prices fell. Investors sought shelter in government bonds and haven currencies such as the Swiss franc and Japanese yen, weighing on the dollar. Gold leapt.
Senior U.S. and European Union trade officials had been expected to speak Friday to take stock of their tariff negotiations.
G-7 finance and central bank chiefs issued a vague statement Thursday that made no mention of levies, and only one mention of "trade," after a three-day economic summit that featured Treasury Secretary Scott Bessent.
Friday's drop in Treasury yields pared a recent runup that had been fueled by anxiety over the U.S. fiscal outlook. President Trump's tax-and-spending bill, which helped stoke those concerns, is now headed for the Senate.
In recent trading:
Futures tied to the Dow industrials, Nasdaq-100 and S&P all dropped more than 1%.
Treasury yields moved lower. Benchmark 10-year yields drifted under 4.5%; their 30-year equivalents hovered above 5%.
Bitcoin prices held near records, after hitting a new intraday high yesterday. Trump held a gala dinner late Thursday with the biggest holders of his meme coin. Meantime, the biggest U.S. banks are exploring whether to issue a joint stablecoin.
Gold futures jumped more than 1.5%.
Coming up:
New home sales data are due at 10 a.m. ET.
Federal Reserve governor Lisa Cook is due to speak at noon.
Monday is Memorial Day; stock and bond markets will be closed.
(END) Dow Jones Newswires
May 23, 2025 08:50 ET (12:50 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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