Markets Reel as Trump’s Tariffs Send Shockwaves Through Global Economy
Markets across the globe nosedived Thursday after US President Donald Trump’s sweeping new tariffs ignited fears of a global trade war, inflation, and a potential economic slowdown.
The S&P 500 fell sharply—down 3.5% by mid-day—while tech giants like Apple and Nike saw their share prices tumble. In the UK, the FTSE 100 dropped 1.5%, while Germany’s DAX and France’s CAC 40 slid by more than 3%. Asian markets were also hit hard, with Japan’s Nikkei down nearly 3% and Hong Kong’s Hang Seng falling 1.5%.
Gold, often viewed as a safe haven during economic uncertainty, surged to an all-time high of $3,167 an ounce before settling slightly lower.
Trump’s Tariff Tsunami
Trump announced a baseline 10% tax on all imports, with steeper tariffs on select countries. Imports from China now face a punishing 54% levy, while goods from Vietnam are hit with 46%. The European Union, UK, and other global partners were also targeted in what Trump described as a “long-overdue correction” to global trade.
“This is the worst-case scenario,” said Jay Hatfield, CEO of Infrastructure Capital Advisors. “It’s a massive blow to investor confidence.”
Consumer Giants Hit Hard
Nike, which relies heavily on Asian manufacturing, saw shares plunge 11%. Apple, with its deep ties to China and Taiwan, lost 7%. Electronics retailer Best Buy slumped 15%, while Target fell 10%.
Luxury goods companies also took a hit, with Adidas and Puma stocks dropping more than 9%, and jewellery brand Pandora shedding 10%. Pandora estimates the new tariffs could cost it nearly DKK 700 million in 2025.
Motorbike maker Harley-Davidson, already a target of EU retaliation in Trump’s first term, fell 7%.
Corporate Fallout Begins
Carmaker Stellantis responded swiftly by halting production at factories in Mexico and Canada, triggering temporary layoffs for 900 US-based employees.
“These are actions that we do not take lightly,” said Antonio Filosa, COO of Stellantis North America. “But they are necessary given current market dynamics.”
Recession Fears Rise
With the US consumer sector accounting for 10–15% of global economic activity, analysts warned that the tariffs will increase inflation and lower consumer spending, dragging down global GDP.
Principal Asset Management slashed its growth forecast for China from 4.5% to 4.2%, and warned Europe could lose nearly a full percentage point of growth—more if retaliation follows.
In the US, inflation is expected to rebound from 2.8% to 4% by year-end, while recession risks grow unless Trump delivers on his promise of major tax cuts.
Investors Turn to Gold, Pull Back from Dollar
While stocks sank, gold surged as investors rushed to safer assets. Meanwhile, the US dollar weakened, with the British pound rising over 1% to briefly touch $1.32 before settling.
“Trump’s tariffs are not just about economics—they’re political shockwaves,” said Seema Shah, chief global strategist at Principal Global. “The short-term impact is painful, and the long-term payoff, if any, will take years
