Global Markets in Freefall After Trump's SHOCK Tariff Announcement!

2025-03-04 12:00:59.912

European and Asian shares tumbled Tuesday following the implementation of new tariffs by President Donald Trump. China responded to the 20% tariff increase on its goods with higher duties (up to 15%) on US farm exports. Germany's DAX fell 1.8%, France's CAC 40 dropped 1.1%, and Britain's FTSE 100 lost 0.4%. In Asia, Tokyo's Nikkei 225 decreased by 1.2%, Hong Kong's Hang Seng fell 0.4%, while South Korea's Kospi and Taiwan's Taiex also experienced losses. Although the S&P 500 futures saw a slight increase, and the Dow Jones Industrial Average remained unchanged, Monday saw significant losses for both, along with the Nasdaq. Trump's statement that there's 'no room left' for negotiations further dampened investor sentiment. The Chinese tariffs on US farm products expanded the conflict's impact, with experts predicting a decline in US agricultural exports to China. The overall market reaction reflects investor disappointment and growing pessimism about the global economic outlook, particularly concerning inflation and manufacturing activity. Several high-flying tech stocks, including Nvidia and Tesla, suffered steep declines. Crude oil prices also fell, and the US dollar weakened against the Japanese yen and the euro. Bitcoin also experienced a significant drop.