US Stock Markets Decline as Tariff Threats from Trump Wreak Havoc
- Small Town Truth
- May 24
- 2 min read

On Friday, US stock markets experienced a downturn, closing out the week with significant losses amid renewed tariff threats from President Trump. Investors expressed heightened concern over the implications of his proposed tax legislation and their impact on the economy.
The Dow Jones Industrial Average (^DJI) fell by 0.6%, while the S&P 500 (^GSPC) dropped approximately 0.7%. The technology-heavy Nasdaq Composite (^IXIC) had a tougher session, retreating by about 1%. Over the course of the week, all three indexes recorded losses exceeding 2%.
Investor sentiment was dampened by President Trump's recent comments about Apple (AAPL), where he stated that the company must pay a 25% tariff on iPhones sold in the US unless they are manufactured domestically. This declaration led to a nearly 3% decline in Apple shares, as the company had recently begun relocating some of its manufacturing operations to India, while continuing to rely on Chinese suppliers caught in the ongoing trade conflict.
Tariff Threats and Market Reactions
During a press conference on Friday, Trump suggested that similar tariffs could also apply to other smartphone manufacturers. “It would be more, it would be also Samsung and anybody that makes that product, otherwise it wouldn’t be fair,” he remarked, adding, “Again, when they build their plant here, there’s no tariffs.”
In addition to targeting Apple, Trump proposed an increase in tariffs on EU imports to a staggering 50%, effective June 1, amidst stalled trade negotiations with the European bloc.
The president's remarks disrupted a relatively calm trading atmosphere on Wall Street, as traders braced for the upcoming Memorial Day market closure. The uncertainty surrounding tariffs has led several companies, including Deckers Outdoor, to withhold full-year financial forecasts due to concerns about economic impacts.
Impact on Treasury Yields and Future Concerns
Additionally, rising long-term Treasury yields reflect investor apprehension about increasing federal debt resulting from Trump's pending tax reforms. These concerns have intensified following a recent Moody's downgrade, which highlighted potential trillion-dollar increases to the US deficit as a result of the proposed tax legislation.
In anticipation of the upcoming earnings report from Nvidia (NVDA), scheduled for Wednesday, Wall Street remains watchful, especially as the semiconductor company has been significantly impacted by trade dynamics and investments in artificial intelligence.
Overall, market analysts are observing the ongoing supply chain issues and tariff consequences closely, with expectations of regulatory shifts and lobbying efforts likely to shape the financial landscape in the upcoming weeks.