Markets Brace For Trump’s Tariff Plan
Global stock markets fell on Wednesday as investors anxiously awaited details of U.S. President Donald Trump’s new tariff measures, set to be unveiled later in the day.
The dollar and oil prices dipped, while gold, a traditional safe-haven asset, hovered near an all-time high as uncertainty gripped investors.
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EKO HOT BLOG reports that after a mixed session in Asia, where Tokyo closed slightly higher and Chinese indices steadied, European markets declined, with Frankfurt leading the losses. Wall Street’s major indexes also slipped at the open.
“Today is a day of uncertainty for traders as we assess the potential for retaliatory tariffs and an escalating trade war,” said Joshua Mahony, analyst at Scope Markets.
Trump, who has described the move as “Liberation Day”, argues that the U.S. has been exploited for years in trade. His proposed tariffs could either match foreign levies, impose a flat 20% duty, or selectively target nations with exemptions, according to U.S. media reports.
Adding to concerns, sweeping 25% tariffs on auto imports—announced last week—are set to take effect on Thursday.
The White House confirmed that Trump will officially announce his decision at 4:00 pm Washington time (2000 GMT), after Wall Street closes. While the Republican leader promises a “golden age” for American industry, officials admitted the final details were still being worked out as of late Tuesday.
Chris Weston, an analyst at Pepperstone Group, noted that immediate implementation of the tariffs could offer some clarity to markets, even if it restricts diplomatic negotiations.
“While this isn’t great for economic growth or corporate earnings, at least it gives investors a sense of certainty,” Weston explained.
Markets Brace For Trump’s Tariff Plan
However, fears of global economic disruption remain high, with several countries warning of retaliatory measures. Analysts have cautioned that escalating trade tensions could slow economic growth and fuel inflation, which may hinder central banks from further interest rate cuts.
Meanwhile, Tesla shares dropped 5% in early trading after the electric vehicle giant reported a 13% decline in first-quarter sales. The company attributed the slump to lower production during factory upgrades and concerns over CEO Elon Musk’s role in Trump’s administration.
New York Dow: ⬇ 0.3% at 41,850.20
S&P 500: ⬇ 0.4% at 5,613.46
Nasdaq Composite: ⬇ 0.3% at 17,399.32
London FTSE 100: ⬇ 0.7% at 8,572.49
Paris CAC 40: ⬇ 0.8% at 7,814.50
Frankfurt DAX: ⬇ 1.3% at 22,245.82
Tokyo Nikkei 225: ⬆ 0.3% at 35,725.87 (close)
Hong Kong Hang Seng: Flat at 23,202.53 (close)
Shanghai Composite: ⬆ 0.1% at 3,350.13 (close)
Brent Crude: ⬇ 0.24% at $74.31 per barrel
West Texas Intermediate: ⬇ 0.1% at $71.11 per barrel
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