Stocks slide worldwide ahead of Trump’s ‘Liberation Day’ as trade war fears mount
Global stock markets, including those in the US and Europe, fell sharply on Wednesday as uncertainty loomed ahead of US President Donald Trump‘s highly anticipated tariff announcement, raising fears of a potential global trade war, according to news agency AFP.
Investors are on edge as Trump prepares to unveil a new wave of tariffs, known as “Liberation Day,” which could impact both allies and adversaries. With speculations about retaliatory tariffs and the potential escalation of trade tensions, market sentiment has been fragile. The dollar and oil prices both slipped, while gold, often seen as a safe haven, approached its all-time high.
Following a slight uptick in Tokyo and steadying Chinese markets, European stocks dropped, with Frankfurt leading the losses. The decline continued on Wall Street after opening, further exacerbating investor anxieties.
Joshua Mahony, an analyst at Scope Markets, highlighted the heightened uncertainty in the markets, with traders weighing the possible economic impact of a full-blown trade conflict. Trump’s comments about years of “ripping off” the United States have added to concerns that both friendly and adversarial nations might be caught in the crossfire of the tariffs.
The uncertainty surrounding Trump’s tariff plans has been exacerbated by conflicting reports about the details of the measures. Initial suggestions indicated that tariffs would match those imposed by other countries, but reports have since emerged that Trump may impose blanket 20% tariffs or provide preferential treatment to certain countries.
One of the major fears is the immediate effect of the new 25% auto tariffs set to go into effect on Thursday. Trump’s planned announcement, which will take place after Wall Street closes, is expected to provide clarity on the situation but also further fuel concerns about global economic growth and inflation.
Tesla, which has become a significant stock in global markets, saw its shares plummet by 5% after it reported a 13% drop in first-quarter auto sales. Contributing to this decline were factors such as lower production due to factory upgrades and growing dissatisfaction among customers related to CEO Elon Musk‘s involvement with the Trump administration.
Key market movements (as of 1015 GMT)
- New York – Dow: DOWN 0.3 percent at 41,850.20
- New York – S&P 500: DOWN 0.4 percent at 5,613.46
- New York – Nasdaq Composite: DOWN 0.3 percent at 17,399.32
- London – FTSE 100: DOWN 0.7 percent at 8,572.49 points
- Paris – CAC 40: DOWN 0.8 percent at 7,814.50
- Frankfurt – DAX: DOWN 1.3 percent at 22,245.82
- Tokyo – Nikkei 225: UP 0.3 percent at 35,725.87 (close)
- Hong Kong – Hang Seng Index: FLAT at 23,202.53 (close)
- Shanghai – Composite: UP 0.1 percent at 3,350.13 (close)
Currencies
- Euro/dollar: UP at $1.0819 from $1.0793 on Tuesday
- Pound/dollar: UP at $1.2945 from $1.2920
- Dollar/yen: DOWN at 149.51 yen from 149.53 yen
- Euro/pound: UP at 83.58 pence from 83.51 pence
Commodities
- West Texas Intermediate: DOWN 0.1 percent at $71.11 per barrel
- Brent North Sea Crude: DOWN 0.24 percent at $74.31 per barrel
