TL;DR

Trump targets EU/Apple with tariffs; gold, Bitcoin hit records; Japan inflation, Germany recession deepen.

Highlights

• Trump proposes 50% tariff on all EU imports from June 1, sending U.S. futures down over 1%1.
• Trump threatens 25% tariff on foreign-made iPhones; Apple shares fall 4% pre-market10.
• EU to impose €2 fee on small parcels from non-EU countries (mainly China); G7 discusses joint tariffs on Chinese goods and reaffirms Ukraine support4.
• U.S. Senate bill proposes 500% tariff on buyers of Russian oil, gas, and uranium, with a ban on U.S. purchases of Russian sovereign debt6.
• Germany enters third consecutive year of recession with nearly 200,000 business closures, citing EU sanctions on Russia8.
• Japan’s inflation hits 3.5% (rice up 98% y/y); long-dated JGB yields reach record highs; Nissan plans to cut 20,000 jobs and sell Yokohama HQ911.
• Gold rises to $3,330/oz, up 4% weekly, amid U.S. fiscal concerns and a weak 20-year bond auction19.
• Bitcoin hits record $111,900 as U.S. regulatory optimism and institutional inflows accelerate18.
• Ukraine targets Russian infrastructure with drone strikes; Russia orders military buffer zone along Ukraine border25.
• EU delays Basel III FRTB trading rules to 2027, aligning with U.S. and UK timelines7.
• Brazil freezes BRL 31.3B in spending and raises IOF tax to target 2025 zero-deficit; Ibovespa and BRL weaken12.
• Kraken to offer 24/7 tokenized trading of U.S. stocks (Apple , Tesla, Nvidia) to overseas clients via Solana17.

Commentary

A sharp uptick in U.S. protectionism is driving global market volatility. Trump's proposed 50% tariff on EU imports and the threatened 25% tariff on foreign-made iPhones have triggered a risk-off move, with U.S. equity futures and Apple shares both under pressure110. These measures, combined with the EU's new parcel fee on Chinese goods and G7 discussions of joint tariffs, signal a broader shift toward trade barriers4. Exporters, global tech supply chains, and consumer goods firms are likely to see increased cost pressures and supply chain uncertainty.

Fixed income and commodities are responding to mounting fiscal and inflation concerns. Gold has surged to $3,330/oz, supported by a weaker dollar, ongoing safe-haven demand, and worries about U.S. fiscal health following a weak 20-year bond auction and the passage of Trump's tax bill19. In Japan, surging rice prices have driven inflation to 3.5%, pushing long-dated JGB yields to record highs and raising questions about the Bank of Japan's next steps9. Meanwhile, Germany's deepening recession—driven by sanctions fallout and nearly 200,000 business closures—underscores persistent weakness in the eurozone8.

Geopolitical risk remains elevated. Ukraine's drone strikes on Russian infrastructure and Russia's move to establish a military buffer zone along the border highlight ongoing conflict and potential for further disruption in energy and commodities25. The U.S. Senate's push for a 500% tariff on Russian energy buyers and continued G7 support for Ukraine reinforce the likelihood of sustained sanctions and fragmented global energy flows614.

In digital assets, Bitcoin 's new all-time high above $111,000 reflects regulatory optimism and institutional demand18, even as the $223M Cetus Protocol exploit on Sui underscores ongoing DeFi risks20. Kraken's move to offer tokenized U.S. equities to overseas clients via Solana points to further integration between traditional and crypto markets, though U.S. residents remain excluded due to regulatory constraints17.

Traders should monitor further developments in trade policy, safe-haven flows, and central bank responses to inflation and fiscal stress. Equity volatility is likely to remain elevated, especially in tech and exporters, while fixed income and commodity markets remain sensitive to macro and geopolitical shocks.