Global Stock Markets Decline Sharply Amidst New Tariffs Imposed by the U.S.
U.S. markets experience the steepest fall since the pandemic, while European indexes also suffer significant losses.
On Thursday, global stock markets faced considerable turbulence following the announcement of new tariffs by U.S. President Donald Trump, marking the most severe decline in U.S. markets since the onset of the COVID-19 pandemic.
At the close of trading, the Nasdaq composite fell by 5.97%, the S&P 500 dropped 4.84%, and the Dow Jones Industrial Average decreased by 3.98%.
These levels reflect significant declines reminiscent of the spring and summer of 2020, when the most stringent measures to curb COVID-19 were implemented.
The retail and fashion sectors saw notable pressures, with Ralph Lauren's stock decreasing by 16.3% and Nike's by 14.44%.
These drops followed Trump's tariffs impacting production in Asian countries, particularly Vietnam, where these brands have substantial manufacturing operations.
The technology sector was also affected.
Apple shares fell by 9.2%, Amazon's stock dropped by 9%, and Nvidia saw a decline of 7.8%.
These companies are heavily reliant on international supply chains, particularly from China, which is significantly impacted by Trump's tariff policies.
The U.S. dollar weakened against the euro, climbing close to 1.11, and also dropped against the Japanese yen, contributing to a decrease in the yield on U.S. government debt.
Asian markets experienced similar declines, averaging around 2% lower, followed by European markets that closed with significant losses.
In Europe, major indexes reported some of the worst declines in two years.
The IBEX 35, Spain's leading index, fell by 1.19%, dropping below the 13,200 points mark, making it the best-performing European index amid the downturn.
However, other notable losses included Repsol with a 5.35% drop and Banco Santander with a 5.2% decline.
Inditex lost 2.11%, while BBVA fell by 1.53%.
Conversely, Iberdrola reported a gain of 3.19%.
The Paris index decreased by 3.31%, Milan's index fell by 3.6%, and Frankfurt's market saw a decline of 3.08%, with companies like Adidas suffering losses exceeding 11%.
The London market closed down by 1.56%, while Zurich's index fell by 2.5%.
The EURO STOXX 50, which tracks major European companies, experienced a loss of 3.57%.
In Asia, declines persisted around 2%, with Japan's Nikkei index dropping by 2.77% after the tariff announcements.
The Hong Kong Hang Seng index closed down by 1.52%, while South Korea's KOSPI fell by 0.76%.
The Shanghai Composite index lost 0.24%, and Shenzhen’s market fell by 1.4%.
India's BSE Sensex also recorded a slight decline of 0.42%.
In his announcement, Trump labeled Wednesday as 'Liberation Day', unveiling a universal 10% tariff alongside additional levies up to 49% for certain territories.
The proposed tariffs include 20% for the European Union, 34% for China, and 24% for Japan.
Trump characterized these tariffs as 'friendly reciprocal tariffs', arguing they are lower than existing duties imposed by those regions on U.S. goods.
Ursula von der Leyen, President of the European Commission, indicated that Europe is 'prepared to respond' and is working on new measures in light of the tariffs.
Furthermore, tariffs of 25% on automotive exports to the United States were implemented on Thursday, a measure Trump claims will revitalize the sector and contribute to the overarching slogan of 'Make America Great Again.'
At the close of trading, the Nasdaq composite fell by 5.97%, the S&P 500 dropped 4.84%, and the Dow Jones Industrial Average decreased by 3.98%.
These levels reflect significant declines reminiscent of the spring and summer of 2020, when the most stringent measures to curb COVID-19 were implemented.
The retail and fashion sectors saw notable pressures, with Ralph Lauren's stock decreasing by 16.3% and Nike's by 14.44%.
These drops followed Trump's tariffs impacting production in Asian countries, particularly Vietnam, where these brands have substantial manufacturing operations.
The technology sector was also affected.
Apple shares fell by 9.2%, Amazon's stock dropped by 9%, and Nvidia saw a decline of 7.8%.
These companies are heavily reliant on international supply chains, particularly from China, which is significantly impacted by Trump's tariff policies.
The U.S. dollar weakened against the euro, climbing close to 1.11, and also dropped against the Japanese yen, contributing to a decrease in the yield on U.S. government debt.
Asian markets experienced similar declines, averaging around 2% lower, followed by European markets that closed with significant losses.
In Europe, major indexes reported some of the worst declines in two years.
The IBEX 35, Spain's leading index, fell by 1.19%, dropping below the 13,200 points mark, making it the best-performing European index amid the downturn.
However, other notable losses included Repsol with a 5.35% drop and Banco Santander with a 5.2% decline.
Inditex lost 2.11%, while BBVA fell by 1.53%.
Conversely, Iberdrola reported a gain of 3.19%.
The Paris index decreased by 3.31%, Milan's index fell by 3.6%, and Frankfurt's market saw a decline of 3.08%, with companies like Adidas suffering losses exceeding 11%.
The London market closed down by 1.56%, while Zurich's index fell by 2.5%.
The EURO STOXX 50, which tracks major European companies, experienced a loss of 3.57%.
In Asia, declines persisted around 2%, with Japan's Nikkei index dropping by 2.77% after the tariff announcements.
The Hong Kong Hang Seng index closed down by 1.52%, while South Korea's KOSPI fell by 0.76%.
The Shanghai Composite index lost 0.24%, and Shenzhen’s market fell by 1.4%.
India's BSE Sensex also recorded a slight decline of 0.42%.
In his announcement, Trump labeled Wednesday as 'Liberation Day', unveiling a universal 10% tariff alongside additional levies up to 49% for certain territories.
The proposed tariffs include 20% for the European Union, 34% for China, and 24% for Japan.
Trump characterized these tariffs as 'friendly reciprocal tariffs', arguing they are lower than existing duties imposed by those regions on U.S. goods.
Ursula von der Leyen, President of the European Commission, indicated that Europe is 'prepared to respond' and is working on new measures in light of the tariffs.
Furthermore, tariffs of 25% on automotive exports to the United States were implemented on Thursday, a measure Trump claims will revitalize the sector and contribute to the overarching slogan of 'Make America Great Again.'
Translation:
Translated by AI
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