Trump’s 50% EU Tariff Threat Sparks Market Turmoil

Former U.S. President Donald Trump’s proposal to impose a 50% tariff on EU goods effective June 1st has triggered a sharp decline in U.S. equity markets. S&P 500 futures plunged to 5,750, marking the most significant drop since the temporary tariff truce began.

The announcement came just 24 minutes after Trump’s social media post, catching markets off guard. The 30-year Treasury yield held above 5% as investors sought safe-haven assets, reflecting growing concerns about potential EU retaliation and broader trade tensions.

Market uncertainty has intensified with this first major escalation following the 90-day tariff pause. The MOVE raises questions about the timing and potential impact on global trade flows, with particular attention on how European policymakers might respond.