Global Markets Plunge Amid New U.S. Tariffs
Global Markets Plunge Amid New U.S. Tariffs
Global financial markets have experienced a sharp decline following the U.S. government’s announcement of new tariffs. President Donald Trump has imposed a 25% tariff on imports from Mexico and Canada, along with a 10% increase on imports from China, effective from today. These measures have intensified fears of a global trade war, leading to widespread sell-offs in equity markets.
Major U.S. indices have been significantly affected:
- Nasdaq Composite: fell by 2.8%
- S&P 500: declined by 2.1%
- Dow Jones Industrial Average: opened with a 2.1% drop
Asian markets mirrored this downturn:
- Taiwan Stock Exchange Weighted Index: plunged over 5%
- Nikkei 225 (Japan) and KOSPI (South Korea): both decreased by approximately 3%
In the commodities sector, oil prices have risen, with West Texas Intermediate (WTI) crude increasing by 1.8% to around $74 per barrel.
The U.S. dollar has strengthened to multi-year highs against various currencies:
- Mexican Peso (MXN): USD appreciated by 2.3%, reaching 21.15 MXN, the highest since July 2022
- Euro (EUR/USD): USD rose by 2.3%, with EUR falling to $1.0125, the weakest since November 2022
- Canadian Dollar (CAD/USD): USD increased by 2.3%, reaching 1.4755 CAD, a level last seen in 2003
Despite escalating trade tensions, gold prices have declined to $2,770 per ounce, as the stronger dollar exerts downward pressure on the precious metal.
In summary, the imposition of new tariffs by the U.S. has led to significant volatility in global financial markets, with equities declining, the dollar strengthening, and commodities experiencing mixed reactions. Investors are advised to monitor ongoing trade developments closely, as they are likely to influence market dynamics in the near term.
