Global Stock Markets Drop as Trump’s Tariff Threats Spark Fears

Investors react as Donald Trump prepares to announce new global trade tariffs

Global stock markets fell sharply on Monday as fears grew over a new wave of tariffs set to be introduced by Donald Trump this week. Investors around the world sold off shares, worried about the potential impact on global trade and economic growth.

What’s Causing the Market Panic?

The market sell-off was triggered by Trump’s plan to introduce new tariffs on imports from multiple countries, which he is expected to announce on 2 April.

“You’d start with all countries,” Trump said, hinting that no country would be exempt.

His comments sparked concern about a full-blown trade war, especially with Asia, which he accused of treating the US unfairly.

Big Falls in Asia and Europe

Stock markets in Asia were hit hardest:

• Japan’s Nikkei 225 dropped 3.9%
• Taiwan’s Taiex fell 4.2%
• South Korea’s Kospi dropped 3%
• Hong Kong’s Hang Seng lost 1.6%

In Europe, the sell-off continued:

• FTSE 100 in London fell 0.9%
• Stoxx 600, covering all of Europe, slipped 0.8%

Futures trading in the US also pointed to further losses, with Nasdaq 100 futures down 1.3% and S&P 500 futures down 0.8%.

Tech and Chipmakers Among the Biggest Losers

Technology companies and chipmakers were some of the hardest hit:

• Taiwan Semiconductor fell 4.4%
• Samsung Electronics dropped 3.5%
• Japan’s Disco, a chip toolmaker, slid over 8%
• Tencent and Alibaba in Hong Kong dropped 1.5% and 2% respectively

These companies are particularly vulnerable to trade disruptions because they rely heavily on exports and global supply chains.

Investors Rush to Safe Havens

As stock markets dropped, investors moved their money into safer options:

• Gold surged to a record $3,128 per ounce
• US Treasury bond yields fell, a sign of rising demand for secure government bonds
• The Japanese yen and Chinese renminbi both gained value against the US dollar

These moves suggest investors are bracing for increased market volatility and uncertainty.

What’s Next?

Markets are now on edge, waiting for Trump’s formal tariff announcement. Many investors are selling off stocks to lock in profits before the potential trade war worsens.

“This tariff announcement has affected the whole market sentiment,” said Wei Li of BNP Paribas.

There are also fears that the combination of slowing growth and rising prices could lead to stagflation — a period of economic stagnation and inflation — especially in the US, where major indices fell sharply last Friday.

In Summary

With Donald Trump preparing to hit global trade with sweeping tariffs, stock markets are on high alert. From tech giants to currency markets, the effects are being felt worldwide. Investors will be watching closely as “Liberation Day” — Trump’s term for his tariff launch — approaches.

Sources: (SKY.com, FT.com)