From Morningstar: 2025-05-23 09:24:00

Global equity markets were in turmoil as President Trump called for a 50% tariff on EU goods and a 25% levy on Apple if iPhone manufacturing doesn’t move to the US. European stocks fell, with the Euro Stoxx 50 dropping 2.5%. US equities also declined, with the Nasdaq down 1.2%.

Export-sensitive stocks and cyclical sectors in Europe led declines, with carmaker Stellantis falling 4.6% and EssilorLuxottica closing 4.8% lower. The Stoxx 600 Banks sector index was down 1.8% at the close. Trump’s threats have raised concerns about the impact on EU companies and the potential for increased volatility.

Yields on German government bonds and US treasuries declined as investors sought safe havens following Trump’s tariff threats. Defensive segments of the equity market outperformed, with utilities turning positive and pharmaceutical stocks slipping. Yields on the 10-year bund fell to 2.54%, while 10-year Treasury yields slipped to 4.44%.

With Trump’s proposed tariffs set to take effect soon, the EU faces pressure to respond quickly. If the 50% tariff remains, it could have a significant impact on US growth and core inflation. Europe had already threatened to retaliate after the existing 90-day reprieve, setting the stage for more back-and-forth rhetoric.



Read more at Morningstar: Stocks Fall as Trump Targets Europe and Apple With…