Global Markets React as Trump Announces New Tariffs
World leaders brace for impact of U.S. tariffs; European stock markets in decline.
The international community is preparing to respond to the tariffs announced by President Donald Trump from the White House Rose Garden.
European Commission President Ursula von der Leyen stated, "We are in the storm.
Whoever strikes one of us strikes all, and we are ready to respond.
It is not too late for negotiations, but Europe has everything it needs to weather the storm." The Canadian Prime Minister Mark Carney also indicated a "strong response" from Canada.
U.S. Treasury Secretary Scott Bessent cautioned against escalation, advising, "Do not react; avoid escalation." On Wall Street, futures fell sharply with the S&P 500 down by 3%, dragging down major tech firms such as Apple, Amazon, and Tesla.
In Europe, markets opened lower, trading below parity as investors processed the announcement.
Key developments include:
- French President Emmanuel Macron convened industry representatives affected by the tariffs at the Élysée Palace.
- Von der Leyen reiterated, "We will stand by countries impacted by the tariffs" and expressed disappointment with the U.S. response.
- China firmly opposed the tariffs and announced plans for countermeasures.
- Asian stock markets saw declines, with Tokyo experiencing a significant downturn.
European exchanges continued to slide but avoided collapse.
The Stoxx 600 index, which includes major European companies, fell by 1.3%.
Paris, Frankfurt, London, and Madrid also reported losses ranging from 1.2% to 1.8%.
The technology sector dropped by 3.1%, and luxury brands fell by 4.3%.
Meanwhile, energy prices plummeted, with WTI crude declining to $69.45 per barrel, down by 3.1%.
In a more peculiar turn, Trump’s tariffs impacted uninhabited islands such as Heard and McDonald Islands in the Indian Ocean, which were subjected to a 10% tariff, despite having no commercial activity.
Norfolk Island, home to 2,188 residents, faced a rate of 29%, significantly higher than the rest of Australia.
Finance ministers expressed differing views on responses.
Italian Democratic Party senator Francesco Boccia criticized the Italian government's approach, calling for a united European front.
Meanwhile, Prime Minister Giorgia Meloni postponed her schedule to focus on actions related to the tariffs.
French Prime Minister François Bayrou labeled the tariffs as a "catastrophe" for both Europe and the U.S.
As the crisis unfolded, European and global markets braced for further turbulence.
The volatility led to a decline in government bond yields, with the spread between Italian BTPs and German Bunds stabilizing at 111 basis points.
The yield on a ten-year Italian bond rose to 3.76%, while the German yield stood at 2.64%.
The reverberations of Trump’s actions were felt across various sectors of the economy, raising concerns about the impacts on global trade dynamics.
Leaders and market analysts anticipated further developments, as the international community sought mechanisms to address the tariffs and their implications for global economic stability.
European Commission President Ursula von der Leyen stated, "We are in the storm.
Whoever strikes one of us strikes all, and we are ready to respond.
It is not too late for negotiations, but Europe has everything it needs to weather the storm." The Canadian Prime Minister Mark Carney also indicated a "strong response" from Canada.
U.S. Treasury Secretary Scott Bessent cautioned against escalation, advising, "Do not react; avoid escalation." On Wall Street, futures fell sharply with the S&P 500 down by 3%, dragging down major tech firms such as Apple, Amazon, and Tesla.
In Europe, markets opened lower, trading below parity as investors processed the announcement.
Key developments include:
- French President Emmanuel Macron convened industry representatives affected by the tariffs at the Élysée Palace.
- Von der Leyen reiterated, "We will stand by countries impacted by the tariffs" and expressed disappointment with the U.S. response.
- China firmly opposed the tariffs and announced plans for countermeasures.
- Asian stock markets saw declines, with Tokyo experiencing a significant downturn.
European exchanges continued to slide but avoided collapse.
The Stoxx 600 index, which includes major European companies, fell by 1.3%.
Paris, Frankfurt, London, and Madrid also reported losses ranging from 1.2% to 1.8%.
The technology sector dropped by 3.1%, and luxury brands fell by 4.3%.
Meanwhile, energy prices plummeted, with WTI crude declining to $69.45 per barrel, down by 3.1%.
In a more peculiar turn, Trump’s tariffs impacted uninhabited islands such as Heard and McDonald Islands in the Indian Ocean, which were subjected to a 10% tariff, despite having no commercial activity.
Norfolk Island, home to 2,188 residents, faced a rate of 29%, significantly higher than the rest of Australia.
Finance ministers expressed differing views on responses.
Italian Democratic Party senator Francesco Boccia criticized the Italian government's approach, calling for a united European front.
Meanwhile, Prime Minister Giorgia Meloni postponed her schedule to focus on actions related to the tariffs.
French Prime Minister François Bayrou labeled the tariffs as a "catastrophe" for both Europe and the U.S.
As the crisis unfolded, European and global markets braced for further turbulence.
The volatility led to a decline in government bond yields, with the spread between Italian BTPs and German Bunds stabilizing at 111 basis points.
The yield on a ten-year Italian bond rose to 3.76%, while the German yield stood at 2.64%.
The reverberations of Trump’s actions were felt across various sectors of the economy, raising concerns about the impacts on global trade dynamics.
Leaders and market analysts anticipated further developments, as the international community sought mechanisms to address the tariffs and their implications for global economic stability.
Translation:
Translated by AI
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