Cliff Notes
- Stock markets in Asia and Europe have declined sharply as the 2 April implementation of US tariffs on imports approaches, with Japan’s Nikkei index dropping nearly 4% and the UK’s FTSE 100 reaching a two-week low.
- The US is set to impose a 25% tariff on all cars entering the country, sparking fears of escalating trade barriers against nations perceived to have unfavourable trade agreements with the US.
- As investors seek safer assets, gold prices have reached record highs, while the British pound has remained stable around the $1.29 mark over the past ten days.
Stock markets tumble as Trump tariffs loom
Stock markets have plummeted as the 2 April implementation day of US tariffs ticks closer.
Benchmark stocks in Asia were rattled at the lack of progress in halting US President Donald Trump’s taxes which are due to come into force on US imports from Wednesday.
After delays, 25% tariffs are to be levied on all cars entering the US on what Mr Trump has called “liberation day”.
Trade barriers are also expected to be announced on countries deemed to be giving the US a bad deal on trade.
In Japan, the Nikkei stock index lost nearly 4% at points before closing 3.86% down, while Korea’s Kospi index dropped 2.83%.
European markets followed suit with the UK’s FTSE 100 list of most valuable London Stock Exchange companies down 1%, falling to a more than two-week low.
The larger FTSE 250, which contains more companies based in the UK, lost a large 1.55%, dipping to a level last seen in nearly a year.
Not since late April last year was the index at such a low.
The UK government has been trying to negotiate an exemption with the US government to prevent UK exports from being hit by the tariffs but has so far been unsuccessful.
Germany’s Dax, France’s CAC 40 and the European-wide Stoxx all opened lower.
Gold has reached another record high price as investors put money into investments perceived as safer than some stocks.
There’s been little change in the pound as it has remained around the $1.29 mark, seen over the last 10 days.
Additional sources
Global stock markets tumble as Donald Trump’s tariffs loom – FT
Stock markets tumble as Trump tariffs loom – Sky News
Global stock markets tumble after Wall Street retreat as tariffs loom – Yahoo Finance UK
