Global stock markets plunged on Thursday after President Donald Trump announced sweeping tariffs on major trading partners on Wednesday afternoon, igniting fears of a long-term global trade war.
Markets in Asia, Europe, and North America saw sharp declines as investors reacted to the unexpected scale of new import taxes.
Futures for the S&P 500 fell more than three percent, which shows it could be a rocky open for US markets.
Japan’s Nikkei index dropped over three percent, while Hong Kong and South Korea’s benchmarks fell nearly two percent.
European markets also slumped, with Germany’s DAX and France’s CAC 40 each losing almost two percent.
The US dollar also dipped more than one percent against major currencies.
The sell-off followed Trump’s Wednesday announcement of a 10 percent baseline tariff on all imports, plus country-specific levies.
China faces an additional 34 percent tariff atop existing 20 percent duties, while the European Union was hit with 20 percent and Japan with 24 percent tariffs.
Import-dependent nations like Vietnam and Indonesia saw rates spike to 46 percent and 32 percent, alarming companies relying on their manufacturing hubs.
Analysts questioned the rationale behind the tariffs, noting the Trump administration adjusted calculations to include alleged currency manipulation without clear justification.
Investors fled to safer assets, driving the 10-year US Treasury yield down to 4.08%, its lowest since October.
Brent crude oil prices sank four percent to $71.90 USD a barrel amid fears of slowed global growth.
Trade-reliant sectors suffered steep losses.
Shares of Adidas and Puma plummeted roughly nine percent in Frankfurt, while Danish jeweller Pandora, which produces in Thailand, nosedived by 12 percent.
Nike slid over eight percent in pre-market New York trading.
Shipping giant Maersk fell seven percent on concerns of reduced global commerce.
European banks, including HSBC and Deutsche Bank, dropped more than four percent.
The Stoxx Europe 600 closed 1.7% lower, with technology and consumer goods sectors among the hardest hit.
Market volatility has surged in recent weeks as Trump’s tariff strategy shifted.
Previous measures targeted Canadian and Mexican steel, aluminum, and auto imports, with policies often announced, delayed, and then revised.
Analysts warn that prolonged trade tensions could destabilize the global economy, urging diplomatic solutions.
With no signs of de-escalation, Thursday’s downturn may signal further turbulence as markets brace for fallout from the escalating tariff war.