Global Markets React to President Trump’s “Liberation Day” Tariffs

Global markets took a nosedive after President Donald Trump announced his “Liberation Day” tariffs, causing panic among investors and sending shockwaves through stock indexes. The unveiling of these tariffs led to a significant drop in US stock futures, with the Dow Jones Industrial Average futures down 2.5% or more than 1,000 points, S&P 500 futures down 3%, and Nasdaq 100 futures down 3.3%.

Yeap Jun Rong, an IG market strategist, described the tariffs as a “major shock,” while Wedbush analyst Dan Ives called them “worse than the worst-case scenario.” European stock indexes also slumped as investors punished companies expected to be impacted by Trump’s tariffs, with Germany’s DAX falling 1.8%, Britain’s FTSE 100 sliding 1.3%, France’s CAC 40 losing 2.4%, and the Euro Stoxx 50 dropping 2.4%.

In Asia, markets tumbled following the tariff declaration, reflecting the region’s exposure to the new levies. Trump announced significant taxes on imports from China, Japan, and South Korea, leading to a sell-off in Asian markets. Southeast Asian countries, which have become supply chain hubs, faced substantial tariffs, causing indexes to plummet.

Gold prices surged to a record high, while bitcoin and oil prices fell as investors sought safe-haven assets amid economic uncertainty. Consumer-focused companies were hit hard by the tariff policy, resulting in a challenging first quarter for stocks. Forecasters are concerned about the global economic impact of these tariffs, with some predicting a recession for many countries.

Overall, Trump’s “Liberation Day” tariffs have created turmoil in global markets, with investors bracing for further volatility and economic challenges ahead.