Global financial markets were thrown into disarray late Wednesday following former U.S. President Donald Trump’s announcement of sweeping new tariffs, primarily targeting China and the European Union. The sudden move sent shockwaves through global markets, sparking selloffs and driving investors toward safe-haven assets like gold and bonds.
Although the announcement came after U.S. stock markets had closed, futures markets reacted sharply. By 11:45 PM GMT, Dow Jones futures had plunged 2.4%, Nasdaq futures were down 4.2%, and S&P 500 futures had slid 3.5%.
“Markets are reacting first, asking questions later,” said Chris Zaccarelli of Northlight Asset Management. “This could be an opening play for trade talks, but right now, it’s all about damage control.”
Tech, Retail Stocks Tumble
Technology giants bore the brunt of the market fallout. Apple shares fell 7.4% in after-hours trading, Nvidia dropped 5.2%, and Taiwan’s TSMC declined by 5.9%. The retail and apparel sectors were also hard hit, especially brands dependent on Chinese and Vietnamese manufacturing. New tariffs will impose an additional 34% duty on Chinese-made goods and a steep 46% tariff on imports from Vietnam starting April 9.
Gap Inc. tumbled 8.5%, Ralph Lauren lost 7.3%, and Nike dropped 7.1% in extended trading.
Safe-Haven Rush: Gold Hits New Record
Gold prices soared past previous records, trading around $3,160 per ounce late Wednesday. Investors sought refuge in the metal amid mounting uncertainty, with gold now up nearly 20% since January.
Bond markets also saw a surge in demand, driving the yield on the 10-year U.S. Treasury down to 4.10%, reflecting increased investor caution.
Dollar Weakens, Bitcoin Wobbles
The U.S. dollar took a hit, losing more than 1% against the euro shortly after Trump’s remarks. By late evening, the euro was trading at $1.09, up from $1.04 at the start of Trump’s second term.
Bitcoin initially dipped over 3% following the news but rebounded swiftly as investors weighed its role as a digital safe-haven. The cryptocurrency is gaining increased attention amid traditional market volatility.
