Nearshore News: Tariff Tensions Shake Markets, Apple Faces Pressure, and Europe Rethinks Supply Chain Rules

Trade tensions flared again this week as President Trump threatened steep tariffs on European imports and Apple products manufactured abroad, rattling markets and adding pressure to already fragile global negotiations. The warnings sent U.S. and EU stocks tumbling, with companies and investors bracing for potential fallout. Meanwhile, in Europe, France and Germany are calling for a rollback of corporate supply chain rules they once championed—highlighting the growing tension between regulatory ambition and economic competitiveness.

Nearshore News Summary:

• Trump escalates trade tensions with threats of a 50% tariff on EU imports and 25% on Apple iPhones made outside the U.S.(NYT)
• U.S. markets tumble following tariff threats: S&P 500 down 0.9%, Dow drops 366 points, Nasdaq falls 1.2% (The Washington Post)
• France and Germany call on the EU to roll back supply chain rules, warning they hurt European competitiveness (Financial Times)

Trump Escalates Tariff Threats, Targeting Europe and Apple

Published: May 23, 2025
Source: NYT

President Trump reignited trade tensions by threatening to impose a 50% tariff on European Union imports and a 25% tariff on Apple iPhones not made in the United States. In posts on Truth Social, Trump criticized the E.U. for being difficult in trade talks and warned Apple CEO Tim Cook that devices made abroad—especially in India—would be penalized. 

Key points:

• 50% Tariff Threat on EU Imports: Trump said EU trade talks had stalled and announced a proposed 50% tariff starting June 1, accusing the bloc of exploiting the U.S.
• Apple Targeted Over Offshore Manufacturing: Trump warned that iPhones made outside the U.S. would face a 25% tariff, pressuring Apple to move manufacturing stateside.
• Market Reactions: His posts unsettled financial markets, with U.S. stock futures dropping in early trading.
• Uncertainty in Global Trade Talks: The threats undermine fragile negotiations with more than a dozen countries aiming to avoid broader tariff reinstatements by July.
• Challenges to U.S. Manufacturing Relocation: Experts warn moving Apple production to the U.S. would be highly complex and costly, potentially doubling iPhone prices due to lack of skilled labor and infrastructure.

Wall Street, European stocks and Apple fall following Trump's latest tariff threats

Published: May 23, 2025
Source: The Washington Post

U.S. and European stock markets fell sharply on May 23, 2025, after President Trump threatened to impose 50% tariffs on EU imports starting June 1, and 25% tariffs on Apple iPhones made outside the U.S. The announcement triggered widespread investor anxiety, dragging down major indexes and individual stocks. Apple, Ross Stores, and Deckers Outdoor all saw significant losses, with companies pulling back on financial forecasts due to tariff-related uncertainty. 

Key points:

• Markets React to Tariff Threats: The S&P 500 fell 0.9%, the Dow dropped 366 points, and the Nasdaq sank 1.2% following Trump’s tariff warning on the EU and Apple.
• Apple and Retailers Hit Hard: Apple dropped 2.2% after being directly targeted, while Ross Stores and Deckers Outdoor fell 12.2% and 22.8%, respectively, amid profitability concerns tied to tariffs.
• Investor Uncertainty Grows: Companies cited economic unpredictability from tariffs, with some halting full-year forecasts and missing quarterly expectations.
• Flight to Safety: Treasury yields fell and gold rose 1.6% as investors shifted to safer assets in response to market volatility.
• Trade War Tensions Resurface: Markets had recently rebounded on optimism over paused tariffs, but Trump's latest threats risk reigniting fears of a global recession.

France and Germany urge EU to scrap supply chain rules

Published: May 20, 2025
Source: Financial Times

France and Germany, once proponents of the EU’s corporate supply chain regulation, are now urging its repeal, citing concerns over economic competitiveness. The law mandates companies to address human rights abuses and environmental impact in their supply chains, but leaders argue it imposes costly burdens—especially amid intensifying global competition from China and the U.S. 

Key points:

• Policy Reversal by France and Germany: Presidents Emmanuel Macron and Friedrich Merz have called for scrapping the EU supply chain law, reversing their earlier support.
• Concerns Over Global Competitiveness: Macron criticized the law for burdening European industry amid fierce competition from China and U.S. protectionism.
• Heavy Compliance Costs: Businesses report tracking hundreds of metrics at high costs, with some citing it’s nearly impossible to comply, especially in developing markets.
• Political Divisions in the EU: The debate has exposed rifts between left-leaning advocates of the Green Deal and center-right politicians pushing for deregulation.
• Impact on EU’s Green Agenda: Critics warn that repealing the law undermines the EU’s environmental and human rights goals, potentially inviting further rollbacks.