NEW YORK (AP) — U.S. stocks fell Friday after President Donald Trump threatened 50% tariffs on the European Union that could begin in a little more than a week.
The S&P 500 lost 0.7% to close out its worst week in the last seven. The Dow Jones Industrial Average dropped 256 points, or 0.6%, and the Nasdaq composite sank 1%.
Trump threatened the tariffs before the U.S. stock market opened, saying on his Truth Social platform that trade talks with the European Union “were going nowhere” and that “straight 50%” tariffs could go into effect on June 1. The European Union is one of the United States’ largest trading partners.
Stocks fell immediately afterward in Europe, with France’s CAC 40 index losing 1.7%. The U.S. market also took a quick turn lower, and futures for U.S. stock indexes tumbled after earlier suggesting only modest moves at the open of trading.
The S&P 500 lost as much as 1.3% shortly after trading began, but it pared its loss as traders weighed whether Trump’s latest threats were just negotiating tactics aimed in hopes of getting a deal or something more.