Are Apple and EU Tariff Threats a Tactical Move or Policy Shift?

Trump took to Truth Social to propose a 50% tariff on EU imports and warned Apple would face a minimum 25% tariff on iPhones sold in the U.S. if production remains overseas. Apple stock slid 2.6% to a two-week low. Barclays analysts called the announcement a likely negotiating ploy, but acknowledged ongoing trade policy uncertainty. Wedbush’s Dan Ives called the idea of Apple producing iPhones in the U.S. “a fairy tale,” warning that it would take years to restructure supply chains.

Which Sectors Are Leading the Decline?

Information technology and consumer discretionary sectors were the weakest performers, with ten of the eleven S&P sectors in negative territory.

The Philadelphia Semiconductor Index dropped over 2%, weighed down by losses in Nvidia, Micron, and Qualcomm.

Airline and retail stocks also struggled—American Airlines shed 2%, and Deckers Outdoor sank nearly 20% following disappointing forward guidance.