Trump Sparks Trade War Fears Again, Cracking Market Confidence and Dragging Bitcoin Under $109K

Tranquil pre-holiday market conditions were abruptly disrupted Friday morning after President Trump issued a fiery statement threatening massive new tariffs on the European Union and Apple, reigniting trade war fears and sparking a swift downturn across risk assets.

In a post on Truth Social, Trump said negotiations with the EU had broken down and called for a 50% tariff on all EU imports, to take effect June 1.

“The European Union … has been very difficult to deal with,” Trump wrote. “Our discussions with them are going nowhere!”

He also turned his sights on Apple (AAPL), demanding that iPhones sold in the U.S. be manufactured domestically — or face a 25% import tax.

“I have long ago informed Tim Cook of Apple that I expect their iPhones sold in the U.S. to be made in the U.S., not India or anyplace else,” Trump said. “If that’s not the case, a tariff of at least 25% must be paid by Apple.”

Markets reacted swiftly to the unexpected escalation. U.S. stock futures erased earlier gains and plunged nearly 2%, while Apple shares dropped 3.6%. Bitcoin, which had climbed above $111,000 prior to the news, quickly fell to $108,600, as risk sentiment deteriorated.

The president’s surprise tariff salvo added new volatility to a market that had been drifting calmly ahead of the long weekend — and reintroduced global trade policy as a key variable for investors.