U.S. President Donald Trump took to his social media platform Truth Social, accusing the European Union of making no progress in trade negotiations. He proposed a 50% tariff on EU goods starting June 1 and warned Apple that if iPhones sold in the U.S. are not manufactured domestically, a 25% tariff will be imposed. This announcement created turmoil in the markets, leading Taiwan futures to plunge more than 400 points.

Trump claimed that the annual trade deficit between the U.S. and the EU exceeds $250 million, which he deemed unacceptable. This sentiment reflects dissatisfaction over the deadlock in U.S.-EU trade talks. Consequently, stock markets in Germany and France reacted sharply. According to AFP, as of 12:08 GMT, the CAC 40 index in Paris fell 2.8%, while Germany's DAX index dropped by 2.5%. U.S. futures also fell significantly, with Dow futures down over 600 points, and Nasdaq futures plummeting by over 2%. By approximately 8:30 PM, Taiwan futures had declined over 320 points, reaching a low of 21,082.

Additionally, Trump mentioned earlier that he had informed Apple CEO Tim Cook that he expects iPhones sold in the U.S. to be produced domestically instead of relying on India or elsewhere. More than 60 million smartphones are sold in the U.S. each year, yet the country does not produce any.