Global stock markets plunged and the US dollar hit a six-month low after Donald Trump announced sweeping tariffs against the US’s global trade partners. This move is expected to disrupt supply chains and cause economic turmoil.
Gatekeepers News reports that European markets saw significant declines, with London’s FTSE 100 falling 1.5%, Germany’s DAX down 2.3%, and France’s CAC off 2.5%. The dollar sank nearly 2% against a basket of foreign currencies, prompting Deutsche Bank to warn of a potential “dollar confidence crisis.”
In Asia, Japan’s Nikkei and Topix fell 3.3% and 3.5%, respectively, after the US president applied a 24% tariff on the country. Hong Kong’s Hang Seng was down 1.9%, while Vietnam’s stock market tumbled 6.7% after being hit with 46% tariffs.
US futures also declined, with the Dow futures pointing to losses of 2.7% and the broader S&P 500 futures falling about 3.4%. The tech-focused Nasdaq index was down 3.8% pre-market.
Adam Hetts, a portfolio manager at Janus Henderson Investors, stated, “Eye-watering tariffs on a country-by-country basis scream ‘negotiation tactic’, which will keep markets on edge for the foreseeable future.”
Tony Sycamore, an IG market analyst, added, “The tariff rates unveiled this morning far exceed baseline expectations, and if they aren’t negotiated down promptly, expectations for a recession in the US will rise dramatically.”
