US stocks suffer losses after Trump threatens new tariffs

US stocks closed lower on Friday, posting weekly losses after President Donald Trump escalated his trade war by imposing tariffs on Apple for foreign-made iPhones and recommending tougher new tariffs on the European Union.

The Dow Jones Industrial Average lost 256 points, or 0.61%. The Standard & Poor’s 500 index fell 0.67%, marking its biggest weekly loss in a month and a half. The Nasdaq Composite index fell 1%.

Apple shares also fell more than 2% after Trump posted on Truth Social that iPhones sold in the US should be made in the US, and if they aren’t made in the US, “Apple will pay at least a 25% tariff.” Trump announced on Friday that he would impose 25% tariffs on Apple and Samsung devices if they are not made in the United States, in a post on Truth Social.

Trump explained that these tariffs, which will begin at the end of June, are intended to encourage domestic manufacturing, noting that Apple and Samsung will be subject to this policy if their phones continue to be manufactured in countries such as China, Vietnam, and India.

The announcement sent shares of both companies tumbling in premarket trading amid concerns about rising smartphone prices in the United States.