Apple Inc.’s shares plunged 4% to a low of $193.46 on Friday after US President Donald Trump threatened to impose a new 25% levy on the iPhone maker if it continues manufacturing devices outside the United States.The warning came amid escalating trade tensions, as Trump also proposed a sweeping 50% tariff on goods from the European Union.As of 11:07 am ET, Apple shares were trading at $195.94, down 2.69%.The announcement, made via a series of posts on Trump’s Truth Social platform, rattled investor confidence and triggered a broad sell-off on Wall Street. “I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025,” Trump stated, expressing frustration with ongoing trade negotiations with the bloc, which he claimed “are going nowhere.”Major technology stocks including Microsoft, NVIDIA, Amazon, Alphabet, and Meta also registered losses of up to 2% in early trade.A Reuters report noted that if enacted, the proposed tariffs would significantly elevate the current 10% levy on imported products and intensify economic frictions between the US and the EU—its largest trading partner.ALSO READ | Donald Trump’s fresh blow for Apple’s ‘Make in India’ plans; announces 25% tariff on iPhones made outside USIn a separate message, Trump criticized Apple for failing to shift iPhone production to the US despite his prior requests. He warned that tariffs of “at least” 25% could be imposed if the company does not comply.Market anxiety was reflected in the VIX volatility index—Wall Street’s “fear gauge”—which spiked by 18.5% around 9:30 a.m. in New York.Trump’s administration had previously paused reciprocal tariffs on April 9, a week after implementing them on April 2, which he dubbed ‘Liberation Day.’ This followed earlier 25% tariffs on steel and aluminum imports.Talks are ongoing between the US and more than a dozen countries, including the EU, to strike trade agreements before global tariffs potentially return in early July. On May 12, Washington and Beijing agreed to a 90-day pause on their tit-for-tat tariff measures.Despite efforts to reach deals, foreign officials remain cautious, citing a lack of clarity from the US on its demands and concerns that Trump could unpredictably reinstate tariffs—undermining negotiations.
