Apple shares fall 4% after Trump threatens to impose 25% tariff. Here's why
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Apple share prices on Friday fell 4% to hit a low of $193.46 reacting to US President Donald Trump's threat that his government would impose a new 25% levy against the iPhone maker if the handsets sold in the US are made elsewhere.Trump also ratcheted up the US trade war further saying that a 50% tariff on the European Union would also be slapped, lamenting that negotiations with the EU "are going nowhere,". Trump on Truth Social said that he is recommending "a straight 50% Tariff on the European Union, starting on June 1, 2025."The announcement sparked a sell-off on Wall Street with Dow 30 declining by 0.94% or 391.47 points to 41,467.60 in the initial trade. S&P 500 also fell by 64.68 points and 1.11% around 10:15 AM ET and traded at 5,777.33. Nasdaq Composite was the worst hit at 18,663.90, falling by 261.83 points or 1.38%.Other major stocks like Microsoft Corporation, NVIDIA Corporation, Amazon, Alphabet and Meta were also down by up to 2%.If the new duties come into effect, they would dramatically hike the current US baseline levy of 10 percent, and raise economic tensions between the world's biggest economy and its largest trading bloc, a Reuters report said.In a separate message, the president said Apple had failed to move iPhone production to the United States despite his repeated requests, and he threatened new duties of "at least" 25 percent if they did not comply.The VIX volatility index, known as Wall Street's "fear gauge," was up 18.5 % at around 9:30 am local time in New York.Trump had to pause reciprocal tariffs on April 9, following a week into its implementation on April 2 which he referred to as the 'Liberation Day'. Prior to this, he had imposed a 25% tariff of steel and aluminium imports.The Trump administration is in discussions with more than a dozen governments, including the European Union, in an effort to forge trade agreements before global tariffs are reinstated in early July.On May 12, both the US and China arrived at an agreement on tariffs and paused tit-for-tat tariffs for 90 days.Notwithstanding this, some foreign officials have expressed concern that the US has not clearly outlined its demands, making them reluctant to offer major concessions amid fears that President Trump could reimpose tariffs unpredictably.
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India Today
4 minutes ago
- India Today
Chinese chatter: Why Beijing is worried about Modi's G7 visit
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The key agenda reportedly was to see if a deal could be reached where India's requirement for rare earths was exchanged for China's requirement of resuming direct flights between New Delhi and Direct flights are important for China from an economic perspective, because they ensure more Indian customers purchase raw materials and semi-finished products from the Chinese the Chinese side is upset that while on one hand, India is negotiating with China, on the other hand, it is publicly criticising it for abusing its dominant position in key minerals, portraying it as an "unreliable or untrustworthy" supplier, and loudly warning the world to be vigilant against China's "weaponisation of resources."India, the Chinese argued, is also threatening to look for alternative sources of rare earths around the world and accelerate the development of domestic rare earth reserves so as to reduce its dependence on China. The Chinese side noted that India was not the only one. 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Therefore, India has little choice but to continue importing rare earths from China, on Chinese Indian diplomacy balance the West and South?The other question that dominated the Chinese discourse was whether Indian diplomacy could balance the interests of the West and the Global has always been suspicious of the G7 platform. Despite the intergovernmental body actively inviting China to join it from 1999 to 2006, China has repeatedly refused, stating it would have to accept and abide by the rules set by the West and assume the international responsibilities assigned by them. It feared that joining the G7 would mean that China would either be subjected to a second 'Plaza Accord', humiliated like Russia, or lose the trust of the vast third world or the developing India, they noted, has chosen a different path. Foreign Minister S Jaishankar once positioned India as a "southwest country", implying it was a bridge between the West and the global South. India, they argued, is seeking to leverage the support of the G7, a Western camp platform, to demonstrate the international community's recognition of its economic size, to strengthen its global economic voice, and thereby enhance its influence in the global goal of becoming a developed country by 2045 is, in a way, also putting pressure on China, whose official stance is that "it will always be a developing country". China has long complained that the West's continuous attempts to force China to become a developed country are really only a ploy, aimed at slowing down China's economic development."India cannot have its cake and eat it too', argued Hu Shisheng, deputy secretary-general of the Academic Committee at the China Institutes of Contemporary International Relations, adding that 'the roles it plays in the West and the global South are mutually contradictory, and India will sooner than later find itself in a rather isolated situation, where it fails to please either side'.advertisementHe cited India's absence from Russia's Victory Day parade or its refusal to criticise the US tariff war at the BRICS Foreign Ministers' Meeting as evidence of India's policy of being a fence-sitter, 'playing both sides', thereby causing dissatisfaction among countries of the South, and diluting their Minister Modi's C position in the group photo of the 2024 G7 summit created ripples on the Chinese internet last year. This year too, China will keep a close eye on the G7 Summit to accurately grasp the geopolitical headwinds.(Antara Ghosal Singh is Fellow, ORF, New Delhi. She is a graduate from Tsinghua University, China, and has been a Chinese language fellow at the National Central University, Taiwan)(Views expressed in this opinion piece are those of the author)Tune InMust Watch
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Shares slide, crude oil prices bounce higher as Israel warns people in Irans capital to evacuate
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