Mōrena and welcome to your Monday recap of the global business and political stories making headlines over the weekend.
First, US President Donald Trump threatened to introduce a 50% trade tariff on all goods from the European Union from June 1, as well warning technology giant Apple about US-made iPhones.
Trump had become frustrated about a lack of progress with trade negotiations between the US and EU, CNN reported.
“Their powerful Trade Barriers, Vat Taxes, ridiculous Corporate Penalties, Non-Monetary Trade Barriers, Monetary Manipulations, unfair and unjustified lawsuits against Americans Companies, and more, have led to a Trade Deficit with the U.S. of more than US$250,000,000 a year, a number which is totally unacceptable,” Trump wrote on social media.
“Our discussions with them are going nowhere!”
Wall Street suffered as a result, with the Dow Jones down 256 points, the S&P 500 dropped 0.67%, while the tech heavy Nasdaq fell 1%, CNBC said.
Apple shares fell 3% after Trump said iPhones sold in the US must be made in the US. If that was not the case, a tariff of “at least” 25% must be paid by Apple.
Analysts said it remained to be seen whether the rhetoric would turn into reality, the BBC reported. Earlier this month, Trump told Apple chief executive Tim Cook that he doesn’t want the technology company to build its products in India, as it diversifies production away from China.
“I said to him: ‘My friend, I treated you very good. You’re coming here with US$500 billion, but now I hear you’re building all over India. I don’t want you building in India’.”
Trump referenced Apple’s commitment in February of US$500b investment in the US.
CNBC said this month that Apple had increased production in India with the aim of making around 25% of global iPhones in that country over the coming years to cut reliance on production in China.
US President Donald Trump.
Meanwhile, German Finance Minister Lars Klingbeil urged restraint in the escalating trade dispute between the EU and US, Bloomberg reported.
“We don’t need any more provocations now, but serious negotiations,” he said.
“The US tariffs are endangering the American economy at least as much as the German and European economies. This trade conflict harms everyone and must be ended quickly.”
At the same time, he said, Europe was united and determined to defend its own interests.
CNBC reported that South Korean presidential frontrunner Lee Jae-myung said the deadline to reach a deal with the US on tariffs needed to be reconsidered.
Lee told a press conference that tariff negotiations would be one of the biggest challenges for the winner of the June 3 election.
“There is not much time,” Lee said. “Isn’t diplomacy something that benefits both sides? If one country benefits and the other country suffers unilaterally, that is not diplomacy. It is called plunder.”
In Ukraine, Russia launched a huge drone-and-missile strike on the capital, Kyiv, as well as dozens of other regions for a second consecutive night, the Associated Press and Reuters reported.
Officials said at least 12 people were killed and scores of others injured. Ukraine was hit with close to 400 drones and missiles, making it the largest single attack of the war.
Russia used 69 missiles of various types and 298 drones, including Iranian-designed Shahed drones, according to the AP.
In the Middle East, Israeli Prime Minister Benjamin Netanyahu criticised the leaders of the UK, France, and Canada, saying they had "effectively said they want Hamas to remain in power", the BBC reported.
He also accused the leaders of siding with "mass murderers, rapists, baby killers and kidnappers". Israel's expanded military operation in Gaza was criticised by the UK, France, and Canada as "disproportionate".
French President Emmanuel Macron.
Meanwhile, French President Emmanuel Macron is on a trip to Southeast Asia where he is expected to focus on energy, transport, and infrastructure during his visit to Vietnam, Bloomberg reported.
State media reported that an agreement on a power grid project was expected between the French Development Agency and Vietnam’s National Power Transmission Corporation.
Bloomberg also said Macron will visit Indonesia and Singapore to speak at the annual Shangri-La Dialogue defence summit on Friday local time.
