European stocks close week lower on Trump's EU, Apple tariff threats

European shares closed sharply lower on Friday after U.S. President Donald Trump ramped up threats of tariffs on the European Union and smartphone giant Apple, reigniting fears of a damaging global trade war.

Trump said he is recommending a straight 50% tariff on goods from the EU starting on June 1, which would result in stiff levies on luxury items, pharmaceuticals and other goods. He also threatened Apple with a 25% tariff on any iPhones sold, but not manufactured, in the United States.

"This latest move threatens a full-scale escalation of the global trade war. European markets will suffer, undoing some of the strong momentum we have seen in recent months," Lindsay James, investment strategist at Quilter, said.

"What happens next is anyone's guess, but it is unlikely the EU simply rolls over following this latest development."

The pan-European STOXX 600 index closed 0.9% lower, and marked a weekly decline, its first in six. The index logged its biggest one-day fall since April 9.

A gauge of euro zone stocks took a sharper 1.5% hit, with declines on London's FTSE 100 contained, as the country clinched a trade deal with the U.S. earlier this month.