April 2, 2025 - Financial markets around the world are feeling the impact of substantial tariffs announced by U.S. President Donald Trump, leading to widespread declines across major indices.

Wall Street experienced a significant downturn, with the Dow Jones Industrial Average closing down by 3.98% at 40,544.64 points.

The Nasdaq Composite fell by 5.97% to 16,550.61 points after briefly dipping by over 6%, while the S&P 500 index slipped 4.84% to 5,396.60 points.

Oil prices also plunged in response, with West Texas Intermediate (WTI) crude falling more than 6%, reaching $67 per barrel, and Brent crude dropping to $70 per barrel.

This decline follows announcements from eight OPEC countries indicating plans to increase oil production by 411,000 barrels per day in May, exceeding previous expectations of 135,000 barrels per day.

OPEC cited strong market fundamentals but indicated that further increases in production could be paused if necessary.

Trump’s latest tariff schedule includes duties on various imports, notably microprocessors and pharmaceuticals.

During a flight aboard Air Force One, he expressed willingness to negotiate the tariffs if other countries 'offered something phenomenal.' Notably, he also confirmed that Elon Musk would soon step back from government roles to focus solely on his businesses.

In Italy, the government is aiming to negotiate a framework with the United States in a European context, seeking to avoid tit-for-tat tariffs while urging Brussels to reconsider its stance on trade agreements and review the Stability Pact.

Prime Minister Giorgia Meloni described the tariffs as 'a wrong choice' but downplayed the catastrophic narratives, asserting that the U.S. market represents just 10% of Italian exports.

Key developments include:
- The Tokyo Stock Exchange plunged by over 3.5%, reflecting the negative regional sentiment.

- Moscow's stock market opened higher, up by 2.04%, as Russia was excluded from the new tariffs due to the existing sanctions related to the Ukraine conflict.

- The International Monetary Fund warned that these tariffs present a significant risk to global economic stability, calling for constructive dialogue to reduce tensions.

Vice President JD Vance commented on the market reactions, suggesting that despite a 'bad day in the stock market,' the long-term outlook remains optimistic, citing Trump's belief in a forthcoming economic boom driven by reinvestment in American manufacturing.

In the wake of these developments, various sectors, particularly Italian agriculture, are bracing for the potential financial fallout from the U.S. tariffs.

Estimates indicate that the tariff implementation could raise consumer prices substantially, with potential impacts on Italian businesses exporting wine, food, and automobiles.

The agriculture and food industry could face up to 4.2 billion euros in additional costs, significantly affecting household expenditure.

Moreover, Japan's Prime Minister Shigeru Ishiba characterized the U.S. tariffs as a 'national crisis' during parliamentary discussions, while his government weighs possible containment measures.

Ishiba underscored the historical importance of Japan's investments in the U.S. economy and the need to safeguard free trade principles.

New tariffs are set at 20% on goods from the European Union and 25% on cars manufactured outside the U.S., with specific rates varying for countries like Vietnam and Thailand.

The tariffs are anticipated to enter into effect in phases between April 5 and April 9, drawing mixed reactions from global trade partners.

Overall, financial markets continue to respond sharply to these developments as uncertainty escalates around trade relations and their implications for global economic growth.