Major stock indexes fell on Friday after US President Donald Trump issued his latest trade threats, recommending a 50 per cent tariff on goods imported from the EU, starting on June 1, and considering a 25 per cent tariff on Apple iPhones made outside the US.
The three major US stock indexes finished weaker. The Dow Jones Industrial Average fell 0.61 per cent, the S&P 500 dropped 0.67 per cent and the Nasdaq Composite slipped 1 per cent.
For the week, the Dow lost 2.47 per cent, the S&P 500 fell 2.61 per cent and the Nasdaq shed 2.48 per cent.
The dollar sank 1 per cent versus the Japanese yen, while the euro rose 0.8 per cent against the greenback.
The dollar index, which measures the greenback against a basket of currencies, hit a three-week trough. For the week, the dollar was down 1.9 per cent.
“This isn’t a strategic bluff – this is a destabilising threat that could do real, lasting damage,” said Nigel Green, chief executive of global financial advisory giant deVere Group.
“Markets are rightly alarmed. Beyond the short-term volatility, there’s a bigger risk unfolding: the risk of recession and erosion of US credibility on the global stage.”
Mr Trump said in a post on his Truth Social network: “The European Union, which was formed for the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with.”
Moody's downgraded the US credit rating late last Friday and the US House of Representatives narrowly approved Mr Trump's sweeping tax cuts on Thursday. The new tax-cut bill is expected to add almost $4 trillion to the US federal government's $36 trillion debt.
The price of gold, a safe haven for investors, rose. Spot gold rose 2.14 per cent to $3,364.74 an ounce.
Government bonds in the US climbed on safe-haven buying after sustaining heavy pressure this week from rising concerns about Mr Trump's tax cuts and the White House's ballooning debt pile. Yields move the opposite direction to prices.
The 30-year US bond yield, which on Thursday hit the highest since October 2023, fell in response to fresh tariff fears. The yield was down 2.2 basis points at 5.042 per cent. The yield on benchmark US 10-year notes fell 3.6 basis points to 4.517 per cent.
“The clearest warning came from the bond market. This is capital seeking safety and that’s a vote of no confidence in stability,” Mr Green said.
Apple shares fell 3 per cent after Mr Trump said in a Truth Social post that he told company chief executive Tim Cook “long ago” that “I expect their iPhones that will be sold in the US will be manufactured and built in the US, not India, or anyplace else”.
Apple is speeding up plans to make most iPhones sold in the US at factories in India by the end of 2026 to navigate potentially higher tariffs on China.
The president's attack on Apple is his latest attempt to pressure a specific company to move production to the US, following car makers, pharmaceutical companies and chip makers. Moving production to the US is likely to increase the cost of iPhones by hundreds of dollars.
Later on Friday, Mr Trump told reporters inside the Oval Office that his proposed tariff on Apple would also apply to “Samsung and anybody that makes that product”, probably referring to smartphones. He said he expected the new phone levy to be in place by the end of June.
The White House had paused most of the tariffs Mr Trump announced in early April. However, Mr Trump left in place a 10 per cent baseline tax on most imports and reduced the 145 per cent tax on Chinese goods to 30 per cent.
“This is bad economics and it’s bad diplomacy,” the deVere chief executive said. “You cannot keep threatening massive tariffs on allies and expect to maintain credibility. The world is watching and beginning to price in a future where US trade policy is impulsive and unreliable.”
“This kind of brinkmanship may win headlines, but over time, it weakens America’s role as a trusted economic partner. You can’t build lasting influence on erratic threats.”
The US risks trading away long-term credibility for short-term posturing. The markets are reacting now. But the consequences could last much longer, he warned.
MOUNTAINHEAD REVIEW
Starring: Ramy Youssef, Steve Carell, Jason Schwartzman
Director: Jesse Armstrong
Rating: 3.5/5
more from Janine di Giovanni
How to wear a kandura
Dos
- Wear the right fabric for the right season and occasion
- Always ask for the dress code if you don’t know
- Wear a white kandura, white ghutra / shemagh (headwear) and black shoes for work
- Wear 100 per cent cotton under the kandura as most fabrics are polyester
Don’ts
- Wear hamdania for work, always wear a ghutra and agal
- Buy a kandura only based on how it feels; ask questions about the fabric and understand what you are buying
Company%20Profile
%3Cp%3E%3Cstrong%3EName%3A%3C%2Fstrong%3E%20Raha%3Cbr%3E%3Cstrong%3EStarted%3A%3C%2Fstrong%3E%202022%3Cbr%3E%3Cstrong%3EBased%3A%3C%2Fstrong%3E%20Kuwait%2FSaudi%3Cbr%3E%3Cstrong%3EIndustry%3A%3C%2Fstrong%3E%20Tech%20Logistics%3Cbr%3E%3Cstrong%3EFunding%3A%3C%2Fstrong%3E%20%2414%20million%3Cbr%3E%3Cstrong%3EInvestors%3A%3C%2Fstrong%3E%20Soor%20Capital%2C%20eWTP%20Arabia%20Capital%2C%20Aujan%20Enterprises%2C%20Nox%20Management%2C%20Cedar%20Mundi%20Ventures%3Cbr%3E%3Cstrong%3ENumber%20of%20employees%3A%3C%2Fstrong%3E%20166%3C%2Fp%3E%0A
UAE v Gibraltar
What: International friendly
When: 7pm kick off
Where: Rugby Park, Dubai Sports City
Admission: Free
Online: The match will be broadcast live on Dubai Exiles’ Facebook page
UAE squad: Lucas Waddington (Dubai Exiles), Gio Fourie (Exiles), Craig Nutt (Abu Dhabi Harlequins), Phil Brady (Harlequins), Daniel Perry (Dubai Hurricanes), Esekaia Dranibota (Harlequins), Matt Mills (Exiles), Jaen Botes (Exiles), Kristian Stinson (Exiles), Murray Reason (Abu Dhabi Saracens), Dave Knight (Hurricanes), Ross Samson (Jebel Ali Dragons), DuRandt Gerber (Exiles), Saki Naisau (Dragons), Andrew Powell (Hurricanes), Emosi Vacanau (Harlequins), Niko Volavola (Dragons), Matt Richards (Dragons), Luke Stevenson (Harlequins), Josh Ives (Dubai Sports City Eagles), Sean Stevens (Saracens), Thinus Steyn (Exiles)
Premier League results
Saturday
Crystal Palace 1 Brighton & Hove Albion 2
Cardiff City 2 West Ham United 0
Huddersfield Town 0 Bournemouth 2
Leicester City 3 Fulham 1
Newcastle United 3 Everton 2
Southampton 2 Tottenham Hotspur 1
Manchester City 3 Watford 1
Sunday
Liverpool 4 Burnley 2
Chelsea 1 Wolverhampton Wanderers 1
Arsenal 2 Manchester United 0
UAE currency: the story behind the money in your pockets
PREMIER LEAGUE FIXTURES
All times UAE ( 4 GMT)
Saturday
West Ham United v Tottenham Hotspur (3.30pm)
Burnley v Huddersfield Town (7pm)
Everton v Bournemouth (7pm)
Manchester City v Crystal Palace (7pm)
Southampton v Manchester United (7pm)
Stoke City v Chelsea (7pm)
Swansea City v Watford (7pm)
Leicester City v Liverpool (8.30pm)
Sunday
Brighton and Hove Albion v Newcastle United (7pm)
Monday
Arsenal v West Bromwich Albion (11pm)
What's in the deal?
Agreement aims to boost trade by £25.5bn a year in the long run, compared with a total of £42.6bn in 2024
India will slash levies on medical devices, machinery, cosmetics, soft drinks and lamb.
India will also cut automotive tariffs to 10% under a quota from over 100% currently.
Indian employees in the UK will receive three years exemption from social security payments
India expects 99% of exports to benefit from zero duty, raising opportunities for textiles, marine products, footwear and jewellery
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
More from Rashmee Roshan Lall
How being social media savvy can improve your well being
Next time when procastinating online remember that you can save thousands on paying for a personal trainer and a gym membership simply by watching YouTube videos and keeping up with the latest health tips and trends.
As social media apps are becoming more and more consumed by health experts and nutritionists who are using it to awareness and encourage patients to engage in physical activity.
Elizabeth Watson, a personal trainer from Stay Fit gym in Abu Dhabi suggests that “individuals can use social media as a means of keeping fit, there are a lot of great exercises you can do and train from experts at home just by watching videos on YouTube”.
Norlyn Torrena, a clinical nutritionist from Burjeel Hospital advises her clients to be more technologically active “most of my clients are so engaged with their phones that I advise them to download applications that offer health related services”.
Torrena said that “most people believe that dieting and keeping fit is boring”.
However, by using social media apps keeping fit means that people are “modern and are kept up to date with the latest heath tips and trends”.
“It can be a guide to a healthy lifestyle and exercise if used in the correct way, so I really encourage my clients to download health applications” said Mrs Torrena.
People can also connect with each other and exchange “tips and notes, it’s extremely healthy and fun”.
Company profile
Date started: 2015
Founder: John Tsioris and Ioanna Angelidaki
Based: Dubai
Sector: Online grocery delivery
Staff: 200
Funding: Undisclosed, but investors include the Jabbar Internet Group and Venture Friends
FIXTURES
Thursday
Dibba v Al Dhafra, Fujairah Stadium (5pm)
Al Wahda v Hatta, Al Nahyan Stadium (8pm)
Friday
Al Nasr v Ajman, Zabeel Stadium (5pm)
Al Jazria v Al Wasl, Mohammed Bin Zayed Stadium (8pm)
Saturday
Emirates v Al Ain, Emirates Club Stadium (5pm)
Sharjah v Shabab Al Ahli Dubai, Sharjah Stadium (8pm)
UAE currency: the story behind the money in your pockets
Tenet
Director: Christopher Nolan
Stars: John David Washington, Robert Pattinson, Elizabeth Debicki, Dimple Kapadia, Michael Caine, Kenneth Branagh
Rating: 5/5
The specs
AT4 Ultimate, as tested
Engine: 6.2-litre V8
Power: 420hp
Torque: 623Nm
Transmission: 10-speed automatic
Price: From Dh330,800 (Elevation: Dh236,400; AT4: Dh286,800; Denali: Dh345,800)
On sale: Now
