US Stock Futures Drop Over 1% on Trump EU, Apple Tariff Threats

President Donald Trump's announcement of a 50% tariff on European Union imports and a minimum 25% tariff on foreign-made iPhones caused significant declines in U.S. stock futures, with the Dow futures dropping over 500 points and tech stocks, particularly Apple, experiencing sharp losses. Trump demanded that Apple manufacture iPhones in the U.S., warning that failure to do so would result in tariffs on their foreign-made products, despite Apple's current production being largely overseas in China and India. These tariff threats reignited fears of a global trade conflict and heightened market volatility, reflected in a surge in the VIX and investors seeking safer assets such as gold. The proposed tariffs come amid stalled trade negotiations between the U.S. and the EU, complicating diplomatic efforts and exacerbating concerns over the U.S. fiscal outlook following the approval of a new tax bill. The market reaction underscores investor anxiety over trade tensions, rising Treasury yields, and Moody's recent downgrade of the U.S. credit rating. Overall, the renewed trade offensive has rattled investors, impacting major stock indexes and shaking confidence ahead of the Memorial Day weekend.