Global stocks plunge and safe-haven assets rally as President Trump’s sweeping import tariffs trigger fears of a full-blown trade war.
Washington, April 3:
Global financial markets reeled in response to President Donald Trump’s surprise tariff announcement, sending stocks tumbling, oil prices down, and gold soaring to a record high. Trump’s decision to impose a baseline 10% tariff on all imports and steep levies on key trading partners such as China (34%), India (26%), and Japan (24%) sparked immediate sell-offs across world markets.
Also Read: “Ready To Fight”: World Leaders Respond to Trump’s Global Tariff Shock
Traders scrambled for safety as the implications of a potential trade war came into sharp focus.
📉 Stock Markets Tumble Worldwide
Wall Street futures took an instant hit:
- Nasdaq futures fell 4%, driven by tech sector fears.
- S&P 500 futures plunged 3.3%, signaling a brutal day ahead.
- Dow Jones dropped 0.37% early in the session.
- In Asia, Nikkei 225 fell 3.42% and Topix slipped 3.32%.
- Australia’s ASX 200 fell 1.96%, led by losses in energy and finance sectors.
Apple shares were down nearly 7% in after-hours trading due to exposure to Chinese supply chains.
🪙 Gold Hits All-Time High
As panic gripped investors, gold surged past its previous record, reaffirming its status as a safe-haven asset amid global uncertainty. Analysts reported a flood of institutional buying as inflation and trade war fears gripped sentiment.
🛢️ Oil Prices Drop on Trade War Fears
Energy markets reacted sharply:
- Brent crude dropped by $1.97 to $72.98 per barrel.
- WTI crude sank by $1.98 to $69.73.
Oil had briefly rallied before Trump’s speech but reversed quickly as traders anticipated a global economic slowdown could weaken demand.
💱 Currency Market Reactions
- The Indian rupee slid in early offshore trade, with the 1-month NDF at 85.86–85.90, signaling a weak open.
- The offshore yuan hit a one-month low of 7.3482, before recovering slightly.
- The Japanese yen surged against the dollar, trading at 148.15, as investors sought safety.
🔥 Trump’s Tariff Bombshell
In his dramatic “Liberation Day” address, Trump framed the tariffs as a defense of American industry:
“Foreign scavengers have torn apart our beautiful American Dream… This ends now.”
- A 10% tariff applies to all imports.
- Steeper duties target China (34%), India (26%), Vietnam (46%), Japan (24%), EU (20%), and South Korea (25%).
- Trump also closed a “low-value” import loophole used by Chinese e-commerce giants.
Despite the sweeping action, Trump said, “We’re being very kind… we’re charging them half of what they’ve charged us.”
💬 Expert Reactions
- Wedbush analysts called the move “worse than the worst-case scenario.”
- IG Markets’ Tony Sycamore warned, “If negotiations don’t begin soon, recession odds in the U.S. skyrocket.”
- Interest rate futures rallied, indicating markets are pricing in a possible Fed rate cut due to slowdown risks.
🌍 What’s Next?
The European Union, Canada, Australia, and China are expected to announce countermeasures. The tit-for-tat could cause lasting damage to global growth, just as markets were stabilizing post-pandemic.
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