Global stock markets fall and dollar dives after Trump announces sweeping tariffs
NEWS | 03 April 2025
Global stocks have fallen sharply and the US dollar hit a six-month low after Donald Trump unveiled sweeping tariffs against the US’s global trade partners in a move that is expected to upend supply chains and cause economic turmoil. European markets were down across the board on Thursday after a sharp sell-off across Asia and US futures signalled similar falls when Wall Street opens. In London, the FTSE 100 fell 1.5%, Germany’s Dax was down 2.3% and France’s CAC was off 2.5%. The dollar sank nearly 2% against a basket of foreign currencies including the pound, which was up more than a cent and a half at $1.3148. Deutsche Bank sent a note warning clients to “beware a dollar confidence crisis”. City of London investors raised bets on interest rate cuts by central banks, as policymakers try to fend off a global recession. The money markets are now pricing in a 92% chance that the European Central Bank cuts eurozone interest rates at its meeting later this month, up from 80% on Wednesday. The chances of a Bank of England rate cut in early May have also risen, to 77%. It followed a major sell-off in Asia where trading partners were hit with some of the highest tariff rises above the baseline 10% applied to imports from all countries selling goods to the US. Overnight, Japan’s Nikkei and Topix fell 3.3% and 3.5%, respectively after the US president applied a 24% tariff on the country. Hong Kong’s Hang Seng was down 1.9%, while the stock market in Vietnam – which was hit with 46% tariffs – tumbled 6.7%. US futures also suffered, with the Dow futures pointing at losses of 2.7% and the broader S&P 500 futures falling about 3.4%. The tech-focused Nasdaq index was down 3.8% pre-market. Futures for Nasdaq were the hardest hit of the three main markets, down 3.5%, with constituents such as Apple – which still has large exposure to China – plunging 7%. Nike took a similar dive of 7.3%, the AI chip maker Nvidia dropped 5.6% and Tesla tanked more than 8%. skip past newsletter promotion Sign up to Business Today Free daily newsletter Get set for the working day – we'll point you to all the business news and analysis you need every morning Enter your email address Sign up Privacy Notice: Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Newsletters may contain info about charities, online ads, and content funded by outside parties. For more information see our Privacy Policy . We use Google reCaptcha to protect our website and the Google Privacy Policy and Terms of Service apply. after newsletter promotion Adam Hetts, a portfolio manager at Janus Henderson Investors, said markets were unlikely to calm down anytime soon. “Eye-watering tariffs on a country-by-country basis scream ‘negotiation tactic’, which will keep markets on edge for the foreseeable future,” he said. “Fortunately, this means there’s substantial room for lower tariffs from here, albeit with a 10% baseline in place.” “We’ve seen the administration have a surprisingly high tolerance for market pain, now the big question is how much tolerance it has for true economic pain as negotiations unfold.” Oil prices also fell, with a barrel of Brent crude down 5.8% at $70.61 amid fears that sweeping tariffs would trigger a global recession, dampening energy demand. Meanwhile, investors flocked to “safe” assets, such as gold, for which prices reached a record high of $3,167.50 overnight. Tony Sycamore, an IG market analyst, said: “The tariff rates unveiled this morning far exceed baseline expectations, and if they aren’t negotiated down promptly, expectations for a recession in the US will rise dramatically.”
Author: Graeme Wearden. Kalyeena Makortoff.
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