Gold Price rise after Trump Announces 50% Tariffs on EU Imports and 25% Tariff Threat on Apple

Gold prices rose sharply this week, climbing nearly 5% as investors responded to President Donald Trump’s announcement of new tariffs on the European Union and Apple Inc. On Friday, gold gained 1.9%, trading above $3,350 per ounce—just below the record levels seen last month.

The jump in gold came after Trump said he plans to impose a 50% tariff on all imports from the European Union starting June 1. He expressed frustration with stalled trade talks, saying “our discussions with them are going nowhere.” At the same time, Trump threatened Apple with a 25% tariff on iPhones unless the company moves production back to the U.S.

These tariff threats raised concerns that trade conflicts could get worse. Stock futures fell as investors sought safer places to put their money, pushing gold higher.

Gold has been steadily rising this year, increasing more than 25%, thanks in large part to the ongoing tariff disputes and trade tensions. Investors are looking for safe assets to protect themselves from the unpredictable effects of tariffs on global trade.

Another factor supporting gold is worry about the U.S. government’s finances. Moody’s recently downgraded the U.S. credit rating, pointing to growing debt and budget problems. Trump’s tax policies are expected to increase the deficit further, making gold attractive as a safeguard against potential inflation and economic risks.

Usually, when U.S. Treasury bond yields rise, gold prices fall because gold doesn’t earn interest. But this time, gold kept rising even as 10-year Treasury yields approached 4.5%. This shows many investors are willing to accept lower returns on bonds and prefer the safety of gold during uncertain times.

Other precious metals also saw gains this week. Platinum reached its highest price in two years and is set for its biggest weekly rise in over four years, jumping more than 9%. Silver and palladium also went up, helped by increased demand and concerns about supply.

Trump’s tariffs could lead to higher costs for many goods, especially if the EU responds with their own tariffs. Apple, which already shifted much of its iPhone production to India and Vietnam, may face increased costs if forced to move manufacturing back to the U.S. That could mean pricier iPhones for American buyers.

The combination of trade conflicts, government debt concerns, and market reactions has created a strong push for gold and other metals. Prices are near all-time highs and remain attractive to investors looking for protection from economic shifts and market volatility.

Also Read: Gold Hits Record $3,500 After Trump Calls Fed Chair a "Major Loser"