On Friday, US President Donald Trump issued another threat to escalate his trade war, warning Apple that he would put a 25% tariff on any iPhones made outside of the US and suggesting a 50% duty on goods from the European Union beginning on June 1.
After weeks of de-escalation had given some respite, the dual threats, which were disseminated through social media, rocked world markets. During early trade, European equities lost 1.7%, the Nasdaq fell 1.5%, and the S&P 500 fell 1.2%.
The announcement caused shares of German luxury automakers, those most vulnerable to tariffs, to plummet. BMW, Mercedes, and Porsche all had declines of 2% to 4.5%. EssilorLuxottica, a sunglasses manufacturer, was 5.5% less expensive.
