Will Trump’s new tariff threat on EU, Apple rattle markets more this week?

Dubai: After a turbulent end to last week, investors head into the new trading week bracing for more market swings driven by fresh geopolitical uncertainty and tariff rhetoric.

US stocks closed out its worst week in nearly two months. The decline came after US President Donald Trump threatened 50% tariffs on goods from the European Union, reigniting fears of a trade war just as markets were stabilising.

Major U.S. indexes—S&P 500, Nasdaq, and Dow Jones—all closed lower Friday, with tech stocks like Apple and retailers like Ross Stores taking a heavy hit.

This week, all eyes will be on how markets digest the potential June 1 deadline for these proposed tariffs. While some analysts view Trump’s remarks as a hardline negotiation tactic, the immediate reaction from both U.S. and European stocks suggests investors are not brushing it off.

Volatility is likely to persist, especially in sectors heavily exposed to international trade and supply chains—tech, retail, and consumer goods among them. Companies like Apple could see further downside if tariff threats turn into policy, while firms with Chinese manufacturing exposure may also be under pressure.

On the flip side, nuclear and defence-related stocks might see upside momentum. Last week, Trump’s executive orders to boost nuclear energy licensing sent companies like Oklo soaring, suggesting investors are quick to shift funds into sectors that stand to benefit from policy moves.

Bond markets will also be worth watching, with U.S. Treasury yields drifting lower, signalling a cautious investor mood.

For investors, the week ahead may not offer clarity—but it does offer opportunity. The key is to stay alert to policy signals and company guidance, especially as more firms pull back full-year forecasts in response to global uncertainty.