US President Donald Trump again threatened on Friday to intensify his trade war, recommend a 50% duty on EU products starting June 1, warning Apple that he can impose a 25% duty on any iPhones manufactured outside the United States.

The twin threats delivered via social media broke the global markets after weeks of shell had given some postponement. The S&P 500 fell 1.2%in early trade, Nasdaq fell 1.5%and European shares decreased 1.7%.

Shares in Germany’s car manufacturers and luxury companies – some of the most prone to tariff rates – fell on the news. Porsche, Mercedes and BMW were down between 2% and 4.5%. Sunbrasses Company Essilorluxottica was 5.5% lower.

Shares of Apple fell 3.7% in trading before the market along with the shares in other technologies Bellwethers. Trump did not give a time frame for his warning to Apple. More than 60 million phones are sold annually in the US, but the country has no smartphone making.

“The European Union, which was formed with the primary purpose of taking advantage of the United States on trade, has been very difficult to deal with,” Trump wrote in the social place of his truth. “Our discussions with them go nowhere!”

On Friday, the EU Commission refused to comment on the new customs threat of 50% and said it would wait for a telephone call between EU trading manager Maros Sefcovic and his American colleague Jamieson Greer.

Districts from the 27 EU countries will meet with trading in Brussels later on Friday.

The EU’s total exports last year to the United States amounted to approx. 500 billion euros, with Germany [161 billion euros]Ireland [72 billion euros] and Italy [65 billion euros] – The three largest exporters. Pharmaceutical products, cars and car parts, chemicals and aircraft were among the largest exports, according to EU data.

“The EU is one of Trump’s least favorite regions and he doesn’t seem to have good relationships with his leaders, increasing the chance of a long -term trade war between the two,” said Kathleen Brooks, research director at XTB.

Export-oriented car companies in Europe-Isarean Germany’s largest car manufacturers-are highly exposed with few other options in the short term than smaller discounts and price increases.

Porsche and Volkswagen’s Audi have no American production. Some, including Audi and Volvo cars, have already said that they will move some production.

Volvo Cars CEO Hakan Samuelsson told Reuters on Friday that customers had to pay a large part of customs -related costs and that it could be impossible to import the smallest cars into the company’s lineup to the United States.

But he remained hopeful that Europe and the United States will soon come to an agreement.

“I think there will soon be a deal. It could not be in the interest of Europe or the US to close the trade between them,” Samuelsson said.

Optimism ‘wiped out’

Trump had sent the markets that were rolled in early April after introducing tariffs on almost all inhabited locals all over the world, including a massive tax of approx. 145% on imported goods from China. Investors responded with furiously sold US assets as the charges caused them to question the safe port status that America has long had, and while the markets have recovered, business and consumer confidence are thrown in the United States.

The shock response forced the White House to put most tariffs in early July, leaving a 10% tax on most imports from other nations and 30% on most Chinese goods. But Trump kept the opportunity to revive certain charges.

The White House has been in negotiations with several countries on trade issues, but progress has been unstable. Finance leaders from the group of seven industrialized democracies tried to neglect disputes about tariffs earlier this week on a forum in the Canadian Rocky Mountains.

“All optimism over trade agreements wiped out in minutes – seconds, even,” wrote Fawad Razaqzada, market analyst at the City Index and Forex.com, in a note on Friday.

Targeting Apple

“I have long ago informed Tim Cook from Apple that I expect their iPhones, which will be sold in the United States of America, will be manufactured and built in the United States, not India anywhere else,” Trump said in a Social Social Social Social Social Social Morning and referred to Apple CEO.

“If not the case, a duty of at least 25% must be paid by Apple to the US”

It is not clear whether a customs on an individual company would face legal obstacles. Apple refused to comment on Trump’s threat.

In response to the market’s upheaval, the White House had given exceptions to steep tariffs on smartphones and some other electronics that are largely imported from China, a break for Apple and other tech companies that depend on imported products.

Apple is aiming to have most of its iPhones sold in the United States at Factories in India by the end of 2026, and accelerate these plans to navigate potentially higher tariffs in China, its main manufacturing base, a source of a source told Reuters.

But Trump and others, including trade secretary Howard Lutnick, have suggested that Apple be able to produce iPhones in the United States. In February, Apple said it will spend $ 500 billion over four years expanding hiring and facilities in nine US states, but it didn’t say the investment would go against bringing iPhone -making to the US

The iPhone manufacturer said most of its smartphones sold in the United States would come from India in the June quarter.

“It’s hard to imagine that Apple may be fully in line with this request by the president for the next 3-5 years,” said Davidson & Co analyst Gil Luria.