Global stock markets have experienced significant declines since US President Donald Trump announced new tariffs on April 2. The Hang Seng Index has been the hardest hit, plummeting by 11.6%. This sharp decline underscores the severe impact of the tariffs on global trade and investor sentiment.
Trump's announcement introduced a 25% tariff on automobiles and parts, along with a 26% reciprocal tariff on imports from India. These measures are aimed at protecting domestic industries but have sparked fears of a trade war, leading to widespread market volatility. The tariffs have particularly affected sectors reliant on international supply chains, causing disruptions and increased costs for businesses.
In the US, the Nasdaq Composite fell by 11.2%, reflecting significant losses in the technology sector, which is highly sensitive to trade tensions. The S&P 500 and Dow Jones Industrial Average also saw substantial declines of 10.5% and 9.2%, respectively.
Brazil's IBOVESPA was relatively less affected, with a 3.0% drop, as its economy is less intertwined with the US automotive sector.
The Asia Pacific region saw mixed reactions, with Japan's Nikkei 225 declining by 11.3%, closely following the Hang Seng's decline. The CSI 300 in China fell by 7.8%, while South Korea's KOSPI decreased by 5.5%. India's Nifty 50 experienced a smaller decline of 1.8%, indicating a more resilient market despite the direct impact of the tariffs.
In the EMEA region, European markets also faced significant downturns. The FTSE 100 in the UK fell by 6.4%, Germany's DAX by 7.8%, and France's CAC 40 by 7.4%. The Euro Stoxx 50, which represents the largest companies in the eurozone, declined by 8.0%.
Overall, the global market reaction highlights the far-reaching consequences of trade policies and the interconnected nature of modern economies.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
