Business
Market Turmoil: Trump’s Tariff Threats Send Stocks Spiraling

U.S. stock markets experienced a significant downturn on May 23, 2025, following President Donald Trump’s announcement of potential tariffs on the European Union and Apple. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all closed lower, reflecting renewed fears of escalating trade tensions.
Key Takeaways
- President Trump threatened a 50% tariff on EU imports and a 25% tariff on Apple iPhones not made in the U.S.
- Major stock indexes fell, with the Dow down 256 points (0.61%) and the Nasdaq down 1%.
- Apple shares dropped 3%, marking its eighth consecutive day of losses.
- The U.S. dollar weakened, while gold prices surged as investors sought safe havens.
Market Reaction to Tariff Threats
The announcement from Trump came via his Truth Social platform, where he expressed dissatisfaction with ongoing trade negotiations with the EU, stating that they were going nowhere. He indicated that if Apple did not shift its iPhone production to the U.S., a hefty tariff would be imposed.
- Dow Jones Industrial Average: Closed down 256 points (0.61%)
- S&P 500: Fell 0.67%
- Nasdaq Composite: Dropped 1%
This marked a troubling week for the markets, with all three major indexes posting their worst weekly performance in several weeks. The Dow and Nasdaq each recorded a 2.5% decline over the week, while the S&P 500 fell 2.6%.
Impact on Major Companies
Trump’s tariff threats particularly affected major corporations, with Apple being a focal point. The tech giant’s stock fell sharply, contributing to a broader decline in technology shares. Other notable companies also felt the impact:
- Apple (AAPL):
- Deckers Outdoor (DECK):
- Ross Stores (ROST):
Broader Economic Implications
The renewed trade tensions have raised concerns about the potential for a recession, as investors fear that high tariffs could stifle economic growth. The volatility in the markets reflects a broader anxiety about the unpredictability of Trump’s trade policies.
- Treasury Yields:
- Gold Prices:
Conclusion
The latest developments in U.S. trade policy have reignited fears of a trade war, with significant implications for both domestic and global markets. As investors brace for potential fallout, the focus will remain on how these tariff threats will shape economic conditions in the coming weeks. The situation underscores the delicate balance between trade negotiations and market stability, leaving many to wonder what the future holds for U.S. economic policy and corporate profitability.
Sources
- Stocks, dollar stumble after Trump reignites his trade war, CNN.
- Stock market news for May 23, 2025, CNBC.
- Stock Market News, May 23, 2025: Trump Threatens EU With 50% Tariffs, Takes Aim at Apple; Nasdaq Drops, WSJ.
- Stocks Fall as Latest Trump Tariff Threats Revive Trade Concerns; Major Indexes
Post Losses for the Week, Investopedia. - Stock markets tumble after Trump threatens tariffs against European Union and Apple, PBS.
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