Stocks tumble and the US dollar weakens as recession fears grip Wall Street – More reaction from the global stock markets, world leaders and experts a day after Donald Trump announced global tariffs.
Stocks tumble and US dollar weakens as recession fears grip Wall Street
- Historic global trade war: President Donald Trump declared a US economic emergency and announced tariffs of at least 10% across all countries, with rates even higher for 60 countries or trading blocs that have a high trade deficit with the US. Auto tariffs are now in effect.
- China hit hardest: China, the second top exporter to the US behind Mexico, will now face a 54% tariff and has vowed to hit back. Canada and the EU, also top trade partners, are preparing countermeasures.
- Global markets rattled: After-hours US stock markets fell sharply, as did Asian and European markets, after the tariff announcement. Gold hit a new record high as investors seek safer investments. Leading economists fear the tariffs could lead to a global recession.
- US dollar weakens: The euro rallied more than 2% against the dollar on Thursday and was set for its best day in more than nine years as investors shunned the greenback after President Donald Trump announced harsher-than-expected tariffs on U.S. trading partners. Investors also flocked to safe haven units such as the yen and Swiss franc as the dollar weakened to six-month lows against both those currencies.