NEW YORK, New York – U.S. stock markets fell Friday as President Donald Trump launched an extraordinary attack on the European Union, and imposed a 50 percent tariff on imported European goods.

“Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than $250,000,000 a year, a number which is totally unacceptable,” the president posted on Truth Social on Friday..

“Our discussions with them are going nowhere!” he said.

“Therefore, I am recommending a straight 50% Tariff on the European Union, starting on June 1, 2025.”

The Standard and Poor’s 500 (^GSPC) fell 39.19 points, or 0.67 percent, to close at 5,802.82, with trading volume reaching 2.523 billion shares. The decline marked the index’s third straight losing session as investors weighed concerns over the re-ignited trade war, interest rate policy and geopolitical tensions.

The Dow Jones Industrial Average (^DJI) dropped 256.02 points, or 0.61 percent, settling at 41,603.07, with 493.274 million shares changing hands.

Tech stocks led the retreat, dragging the Nasdaq Composite (^IXIC) down 188.53 points, or 1.00 percent, to 18,737.21, on heavy volume of 7.677 billion shares.

Global Forex Markets Wrap Up Friday with Dollar Sinking Against Major Currencies

The U.S. dollar was sold off sharply across-the-board on Friday after President Trump slammed the European Union over stalled trade talks.  

Euro and Pound Rally Against the Dollar

The euro (EUR/USD) climbed 0.75 percent to 1.1362, marking its strongest level in three weeks.

The British pound (GBP/USD) also surged, gaining 0.87 percent to 1.3533, supported by stronger-than-expected UK retail sales data and fading expectations of near-term Bank of England rate cuts.

Dollar Slips vs. Commodity Currencies

The Australian dollar (AUD/USD) was among the day’s top performers, jumping 1.34 percent to 0.6494 as rising metal prices boosted demand for the resource-linked currency.

Similarly, the New Zealand dollar (NZD/USD) soared 1.52 percent to 0.5987, extending its weekly winning streak amid broad risk-on sentiment in markets.

The Canadian dollar (USD/CAD) strengthened, with the pair falling 0.93 percent to 1.3726 as oil prices rebounded, supporting the loonie.

Yen and Franc Gain

The U.S. dollar (USD/JPY) dived 1.04 percent against the yen to 142.51.

The greenback also sank against the Swiss franc (USD/CHF), shedding 0.94 percent to 0.8207, as traders continued to bail out of the dollar.

Next week, traders will focus on US PCE inflation data and Eurozone CPI figures for fresh clues on monetary policy paths.

Global Markets Wrap Up Friday with Mixed Performance

Global stock indices closed the week with mixed results on Friday, as European markets saw broad declines while several Asian benchmarks posted modest gains. European bourses were hit sharply by news out of the United States that President Donald Trump was on the warpath. The U.S. leader imposed 50 percent tariffs on European goods Friday.

Canada’s TSX Bucks the Trend

In contrast to world markets, Canada’s S&P/TSX Composite (^GSPTSE) edged up 25.94 points, or 0.10 percent, to 25,879.95, supported by strength in energy and financial stocks. Trading volume totaled 210.58 million shares.

UK and European Markets Slide

The FTSE 100 (^FTSE) in London edged lower, closing at 8,717.97, down 21.29 points or 0.24 percent, as investor sentiment remained cautious.

Germany’s DAX (^GDAXI) suffered a steeper drop, falling 369.59 points or 1.54 percent to 23,629.58, while France’s CAC 40 (^FCHI) declined 130.04 points or 1.65 percent to 7,734.40.

The broader EURO STOXX 50 (^STOXX50E) slid 1.81 percent, losing 98.17 points to end at 5,326.31. The Euronext 100 Index (^N100) also fell, dropping 22.73 points or 1.43 percent to 1,569.40.

Belgium’s BEL 20 (^BFX) was down 48.12 points or 1.07 percent, closing at 4,439.13.

Mixed Trading in Asia-Pacific

In contrast, several Asian markets ended the day in positive territory. Hong Kong’s Hang Seng Index (^HSI) rose 56.95 points or 0.24 percent to 23,601.26, while Singapore’s STI Index (^STI) inched up 0.06 percent to 3,882.42.

Australia’s S&P/ASX 200 (^AXJO) gained 12.20 points or 0.15 percent, settling at 8,360.90, and the All Ordinaries (^AORD) climbed 15.30 points or 0.18 percent to 8,586.70.

India’s BSE Sensex (^BSESN) surged 769.09 points or 0.95 percent to 81,721.08, and Indonesia’s IDX Composite (^JKSE) added 47.18 points or 0.66 percent, closing at 7,214.16.

Malaysia’s FTSE Bursa Malaysia KLCI (^KLSE) rose 0.55 percent to 1,535.38, while New Zealand’s S&P/NZX 50 (^NZ50) bucked the trend, slipping 0.52 percent to 12,596.50.

Other Key Markets

South Korea’s KOSPI (^KS11) dipped slightly, losing 0.06 percent to 2,592.09, and Taiwan’s TWSE Index (^TWII) edged down 0.09 percent to 21,652.24.

Japan’s Nikkei 225 (^N225) rose 0.47 percent to 37,160.47, but China’s SSE Composite (000001.SS) dropped 0.94 percent to 3,348.37.

South Africa’s Top 40 USD Net TRI Index (^JN0U.JO) gained 0.96 percent, closing at 5,164.18.

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