NEW YORK, May 24, 2025 (BSS/AFP) - Stock markets dropped Friday after US President Donald Trump ended a lull in his trade war with threats of massive tariffs on Apple products and imports from the European Union.

Wall Street's main indexes spent the entire session in the red. The biggest loser of the three was the Nasdaq, weighed down by a three percent fall in Apple.

Paris and Frankfurt ended with losses of around 1.5 percent, with shares in luxury and car companies taking a hit after Trump threatened 50 percent tariffs on EU goods.

London's FTSE 100, which initially rose, also ended in the red.

Germany's DAX had also been higher earlier in the day as German economic growth data was revised up.

"What is somewhat of a surprise is the fact that the EU will now face a considerably higher tariff rate than China, an almost unthinkable scenario just a matter of weeks ago," said Lindsay James, investment strategist at Quilter.

"It is highlighting that much of this policy is designed to be punitive, rather than having any economic credibility to it."

Oil prices rebounded, meanwhile, having earlier dropped by around one percent, while the dollar remained under pressure.

Trump's new threats revived investor concerns about his trade policies after a recent deal with Britain and a tariffs truce with China.

"All the optimism over trade deals wiped out in minutes -- seconds, even," said Fawad Razaqzada, market analyst at StoneX.

Trump said on his Truth Social platform that he was "recommending a straight 50% Tariff on the European Union" from June 1 as "discussions with them are going nowhere!"

"The EU is one of Trump's least favorite regions, and he does not seem to have good relations with its leaders, which increases the chance of a prolonged trade war between the two," said Kathleen Brooks, research director at trading platform XTB.

The US president had announced 20 percent tariffs on EU goods last month but suspended the measure to give space for negotiations.

Trump, however, maintained a 10 percent levy on imports from the 27-nation bloc and nearly every other nation around the world, along with 25 percent duties on the car, steel and aluminium industries.

He also threatened on Friday to hit Apple with a 25 percent tariff if its iPhones are not manufactured in the United States.

Trump initially said the tariff would apply only to Apple -- an unusual move in singling out a specific company in trade policy.

However, he later expanded the threat to include all smartphone manufacturers, telling reporters the levy could also hit Samsung.

Trump's social media outburst rocked stock markets which had steadied following losses over concerns about the ballooning US debt and rising US borrowing costs.

- Key figures at around 2050 GMT -

New York - Dow: DOWN 0.6 percent at 41,603.07 (close)

New York - S&P 500: DOWN 0.7 percent at 5,802.82 (close)

New York - Nasdaq Composite: DOWN 1.0 percent at 18,737.21 (close)

London - FTSE 100: DOWN 0.2 percent at 8,717.97 (close)

Paris - CAC 40: DOWN 1.7 percent at 7,734.40 (close)

Frankfurt - DAX: DOWN 1.5 percent at 23,629.58 (close)

Tokyo - Nikkei 225: UP 0.5 percent at 37,160.47 (close)

Hong Kong - Hang Seng Index: UP 0.2 percent at 23,601.26 (close)

Shanghai - Composite: DOWN 0.9 percent at 3,348.37 (close)

Euro/dollar: UP at $1.1369 from $1.1281 on Thursday

Pound/dollar: UP at $1.3535 from $1.3412

Dollar/yen: DOWN at 142.57 yen from 144.01 yen

Euro/pound: DOWN at 83.96 pence from 84.06 pence

Brent North Sea Crude: UP 0.5 percent at $64.78 per barrel

West Texas Intermediate: UP 0.5 percent at $61.53 per barrel