Global markets were rocked on Thursday as steep new tariffs set off a chain reaction across continents. U.S. President Donald Trump announced a 10% baseline tax on all imports, with even higher rates targeting countries with trade surpluses, a move that has fueled fears of a global recession.
U.S. futures plunged with the S&P 500 dropping 3.1% and the Dow Jones Industrial Average slipping 2.6%, setting a cautious tone for when markets reopen. In Europe, Germany's DAX, France's CAC 40, and Britain's FTSE 100 all registered noticeable losses. Asian markets were equally unsettled, as Tokyo’s Nikkei 225 dipped 2.8% by close, while major Japanese firms such as Mitsubishi UFJ Financial Group, Mizuho Financial Group, Sony Corp., and Toyota Motor Corp. saw significant declines.
The impact extended further. South Korea’s benchmark Kospi fell following a 25% tariff, and indices in Hong Kong and on the Chinese mainland showed downward trends. Notably, Yeap Jun Rong of IG Singapore pointed out that an additional 34% tariff on imports from the Chinese mainland has pushed the total tariff burden to 64%, intensifying concerns about a slowing global economy.
Amid fluctuating bond yields and falling oil prices—U.S. benchmark crude sliding to $69.08 per barrel and Brent crude to $72.33 per barrel—economists caution that while the tariffs are aimed at creating a fairer trading system and boosting domestic manufacturing, they could also hamper growth and exacerbate inflation pressures. Global investors now brace for continued volatility as the trade dispute escalates.
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Global markets rattle as Trump escalates trade war with new tariffs
cgtn.com
