Stocks opened sharply lower after President Donald Trump set off fresh tariff concerns with threats to iPhone maker Apple and the European Union.
Trump said in a social media post Apple would have to pay a 25% tariff if phones sold in the country are not made in the U.S. It's the first time Trump has mentioned a specific company in levying taxes. Apple shares lost around 3%.
The president also recommended a 50% tariff on the European Union, beginnng June 1. He said in a social media post the EU “has been very difficult to deal with,” Trump wrote. “Our discussions with them are going nowhere!”
At 10:21 a.m. ET, the blue-chip Dow fell 0.81%, or 340.73 points, to 41,518.36; the broad S&P 500 slid 0.96%, or 56.22 points, to 5,785.79; and tech-laden Nasdaq dropped 1.23%, or 232.47 points, to 18,693.26. The benchmark 10-year Treasury yield fell to 4.509%.
"President Trump’s threat of a 50% tariff from 1 st June may well turn out to be a negotiating tactic and seems very unlikely to be where tariffs settle over the long run," said economists at Andrew Kenningham, chief Europe economist at Capital Economics, in a note. Still, investors will have to wait and see what happens.
Meanwhile, it's now the Senate's turn to examine the proposed tax bill after the House narrowly passed by one vote its version of the legislation that Trump has dubbed the "One, Big Beautiful Bill."
Investors worry that the more than 1,000-page bill will lead to a sharply wider deficit. To pay for the spending, the government would have to issue more debt, which will dampen Treasury prices and push up rates. Debt prices move in the opposite direction of yields.
The 30-year Treasury bond yield touched a high of 5.161%, its highest level since October 2023. The rate on the 10-year Treasury note at one point breached 4.6%. Both yields came off their highs but remain elevated, keeping pressure on stocks.
Corporate news
Cryptocurrency
Major U.S. banks including companies co-owned by JPMorgan Chase , Bank of America, Citigroup, Wells Fargo, and other large commercial banks, are exploring a joint stablecoin to compete with the crypto industry, according to the Wall Street Journal , citing sources.
Bitcoin was last down 1.71% at $109,764.90.
This story was updated with new information.
Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday.
This article originally appeared on USA TODAY: US stocks open down after Trump threatens tariffs on Apple, EU