U.S. equities extended their weekly losses on Friday as President Trump’s aggressive new trade threats reignited fears of a global trade war. The S&P 500, Dow Jones, and Nasdaq all declined, with Apple plunging over 2% after Trump specifically threatened 25% tariffs on iPhones not made in the U.S.—marking the first direct tariff warning against a single company. The broader market was already under pressure from rising Treasury yields and concerns over Trump’s $5+ trillion tax reform bill, which the House passed Thursday and sent to the Senate.
Trump also proposed 50% tariffs on EU goods starting June 1, reversing recent optimism from U.S. trade deals with China and the UK. The announcement shattered the “Buy America” rally that had emerged after April’s tariff pause, with investors now bracing for renewed trade volatility. The S&P 500 is down 2% this week, while the Dow and Nasdaq have lost 1.9% and 1.5%, respectively.
The dual pressures of trade uncertainty and debt concerns from Trump’s tax plan have heightened market anxiety. With the Senate set to debate the bill and the EU likely to retaliate against tariffs, stocks could face further turbulence in the coming weeks. Traders will watch whether the selloff deepens or stabilizes as new economic data emerges.
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