Trump Delays EU Tariffs – Volatility Likely to Continue
Analysts warn investors to prepare for continued market volatility as the threat of a U.S.-EU trade war persists despite President Trump delaying the imposition of 50% tariffs until July 9. Trump’s delay followed a call with EU Commission President Ursula von der Leyen, but uncertainty remains over the U.S. administration’s ultimate demands. While the EU is seeking constructive negotiations, experts say there’s limited time to reach a detailed agreement, and Europe is unlikely to yield to Trump’s aggressive negotiating tactics. Market watchers caution that if talks fail, significant tariffs and retaliatory measures could destabilize supply chains and drive up inflation.
Apple’s India Shift Faces Tariff Turmoil
iPhone shipments from India to the U.S. surged 76% in April year-over-year, overtaking China as Apple ramps up its “Made in India” strategy to offset U.S. tariffs on Chinese imports. Analysts say this shift reflects Apple’s long-term efforts to diversify its supply chain, though India’s manufacturing capacity still lags behind full U.S. demand. Despite a temporary exemption from tariffs, Trump has threatened a 25% duty on all iPhone imports unless Apple relocates production to the U.S., complicating Apple’s plans. Meanwhile, China is reportedly making it harder for India to access key manufacturing tools, as both Beijing and Washington push back on Apple’s relocation efforts.
Mortgage Rates Rise as Debt Fears Stall Home Sales
Mortgage rates rose to 6.86% — the highest since February — driven by concerns over the national debt and a downgraded U.S. credit rating, which pushed Treasury yields higher. This, combined with still-rising home prices, has slowed the spring homebuying season, with existing-home sales dropping 0.5% in April. Despite weaker sales, the median home price hit a record $414,000, marking 22 consecutive months of annual price increases. While more homes are on the market and rates are slightly lower than last year, ongoing economic uncertainty and rising borrowing costs continue to challenge affordability and buyer confidence.
