Global markets experienced severe turbulence on Thursday after US President Donald Trump announced sweeping tariffs, including a baseline 10% duty on all imports and higher levies on key trading partners.
The news led to sharp declines in stock markets, falling currencies, and rising commodity prices, with analysts warning of broader economic impacts.
Futures on US indices tumbled, with the S&P 500 dropping more than 3%, while Asian markets also suffered significant losses. The Nikkei 225 in Japan fell by over 3%, while Hong Kong’s Hang Seng and South Korea’s Kospi also posted sharp declines.
This volatility followed Trump’s announcement of a 10% tariff on all imports, with steeper tariffs on countries like China, Japan, and India.
Among the most notable changes was a 34% tariff on Chinese goods, increasing the effective rate on China to 54% due to existing levies.
Other countries, such as Japan, saw tariffs of 24%, while India faced a 26% reciprocal tax, fuelling market concerns about a global trade conflict.
The administration has argued that the tariffs are designed to address unfair trade practices and currency manipulation by foreign nations.
The tariffs had a ripple effect on currencies. The Indian rupee weakened in the non-deliverable forward market, reflecting market unease about the future of US-India trade relations.
Meanwhile, the Chinese yuan fell to its lowest level in a month, and the Japanese yen strengthened against the US dollar as investors sought safer assets.
The US dollar, on the other hand, rose in volatile trading, with analysts citing a rush to US assets amid global uncertainty.
Stock markets were hit hard, particularly in sectors like technology and manufacturing, with companies such as Apple and Samsung seeing sharp drops.
In Australia, blue-chip stocks fell nearly 2%, with the energy and financial services sectors most affected. The Australian beef industry, specifically targeted by Trump, saw a direct impact on market sentiment.
Commodities also responded to the news. Oil prices briefly dipped into negative territory due to fears that escalating trade tensions could dampen global demand for crude.
On the other hand, gold prices surged to record highs as investors sought refuge in the precious metal.
