US stocks fall on revived Trump trade war worries

Traders work on the floor of the New York Stock Exchange (NYSE) at the opening bell in New York City. (Photo by CHARLY TRIBALLEAU / AFP)

NEW YORK, United States — Wall Street stocks fell Friday on renewed trade war fears as President Donald Trump’s latest tariff threats offset improvements in the US bond market.

Trump threatened 25-percent tariffs on Apple and other smartphone manufacturers whose devices are not built in the United States.

The president also vowed to slap a 50-percent tariff on imports from the European Union. He cited a lack of progress in trade negotiations with the bloc.

READ: Trump fires new 50% tariff threat at EU, targets smartphones

“Trump basically has renewed tariffs fears,” said Peter Cardillo of Spartan Capital Securities. “It’s a down day.”

With trade war worries pervading, Major US indices spent the entire session in the red. The Dow Jones Industrial Average finished down 0.6 percent at 41,603.07.

The broad-based S&P 500 dropped 0.7 percent to 5,802.82. Meanwhile, the tech-rich Nasdaq Composite Index dropped 1.0 percent to 18,737.21.

Trump’s latest tariff statements conclude a week in which trade issues had earlier taken a back seat to congressional debate on Trump’s sweeping tax cut measures.

READ: Trump mega-bill clears hurdle after rebels drop opposition

The bill, which narrowly passed the House of Representatives on Thursday, now goes to the Senate.

US Treasury yields had spiked earlier in the week amid concerns the bill will increase US debt. 

But yields retreated on Friday in a sign demand for US issues had improved.

Among individual companies, Apple fell 3.0 percent on Friday following Trump’s tariff threat.