Market Turmoil as Trump Imposes Heavier Tariffs
Global markets plunged on Thursday after President Donald Trump announced steeper-than-expected tariffs on all U.S. imports, with some trading partners facing duties as high as 54%.
- China: 54%
- Japan: 24%
- European Union: 20%
- Canada & Mexico: 25%
- All other countries: 10%
Trump’s rationale: “Reciprocal tariffs”—arguing that trading partners already impose higher tariffs or de facto barriers on U.S. goods.
Stock Markets Drop Globally
- U.S. equity indices fell sharply, with the S&P 500 and NASDAQ 100 hitting multi-month lows and entering correction territory.
- Asian & European markets saw even steeper losses, reflecting the larger-than-expected tariffs on their economies.
- No retaliatory tariffs have been announced yet, but several nations are considering their response.
U.S. Dollar Tanks as Forex Traders Dump Greenback
- The USD weakened sharply, even against typically weaker currencies like the Canadian Dollar and Mexican Peso.
- EUR/USD and GBP/USD surged to new long-term highs, presenting opportunities for trend traders.
- The Japanese Yen emerged as the strongest currency, benefiting from its safe-haven appeal.
Gold Hits All-Time High Before Pullback
- Gold spiked to $3,167, setting a new record high, before retreating.
- Current price volatility may deter new long positions.
Stronger U.S. Jobs Data vs. Inflation Concerns
- ADP Non-Farm Payroll Forecast: 155K new jobs vs. 118K expected → Indicates economic resilience despite trade tensions.
- Swiss CPI: Flat (0.0%) vs. expected 0.1% rise, signaling softer inflation in Switzerland.
- Upcoming Data Releases:
- U.S. ISM Services PMI
- Unemployment Claims
Conclusion: Trade War Escalation Sparks Uncertainty
Markets are digesting Trump’s unexpectedly aggressive tariffs, with stocks and the U.S. dollar taking a hit. The next move depends on whether trading partners retaliate or negotiate. Investors remain on edge, bracing for heightened volatility in the coming days.
