NEW YORK – Wall Street shares dropped after US President Donald Trump reignited trade tensions by imposing a 50% tariff on European Union (EU) goods and at least a 25% tariff on Apple products if the company does not move iPhone production to the US.

As quoted by Reuters.com, Friday (23/5), the move shifted market focus back to Trump’s aggressive trade stance, following the approval of tax and spending bills by the Republican-controlled House of Representatives.

Meanwhile, Trump faced backlash over his failed attempt to revoke Harvard University's right to admit international students.

US stocks fell on Friday (23/5) and recorded weekly losses after Trump recommended a 50% tariff on goods from Europe, opening a new chapter in global trade tensions and sparking a wave of uncertainty in the markets.

The three major Wall Street indexes pared early losses but still ended lower, each registering a decline of more than 2% for the week.

Technology, communication services, and consumer discretionary stocks were the worst-performing among the 11 S&P 500 sectors. Meanwhile, utility, consumer staples, and energy shares posted gains.

Apple shares (AAPL.O) fell to a two-week low, closing down 3% after Trump warned the company could face tariffs of up to 25% on iPhones sold in the US but not manufactured domestically.

US bond yields retreated from recent highs, with the 10-year Treasury yield falling 4.4 basis points to 4.509%.

“If I had to give today a headline, it would be ‘Here We Go Again!’” said James St. Aubin, Chief Investment Officer at Ocean Park Asset Management, Santa Monica, California.

“This is Trump turning up the heat in tariff talks with the European Union and Apple. The market had hoped that the worst of the tariff rhetoric was behind us. But the reality is, the embers of these discussions are still glowing,” St. Aubin added.

The Dow Jones Industrial Average fell 256.02 points, or 0.61%, to 41,603.07. The S&P 500 lost 39.19 points, or 0.67%, to 5,802.82, while the Nasdaq Composite dropped 188.53 points, or 1.00%, to 18,737.21.

For the week, the Dow declined 2.47%, the S&P 500 slipped 2.61%, and the Nasdaq shed 2.48%.

US Treasury Secretary Scott Bessent stated that Trump did not believe the EU’s trade tariff offer was sufficient.

He also expressed hope that the threat of new tariffs could spur the European Union to engage in further negotiations. (DK/ZH)