Global Markets Plunge Amid New U.S. Tariffs
European and Asian stock exchanges experience significant declines following the imposition of tariffs by the United States.
Global stock markets faced severe declines on Monday, particularly in Europe and Asia, as concerns over new tariffs imposed by the United States impacted investor sentiment.
The tariffs, which came into effect on Saturday, have raised fears of escalating trade tensions.
Frankfurt's stock exchange saw significant losses, plummeting by 7.86% at opening, after briefly falling more than 10%.
The Paris stock exchange dropped by 6.19%, London by 5.83%, Milan by 2.32%, and Switzerland's market declined by 6.82%.
In Asia, key indicators reflected a similar downward trend.
The Hang Seng index in Hong Kong fell by more than 13%, marking its worst day since 1997. Taiwan's stock market closed down 9.7%, the largest decline on record.
Major financial centers such as Tokyo, Shanghai, Seoul, and Taipei were also affected, particularly as many had been partially closed on Friday.
The downturn in markets followed the announcement from the Trump administration that it would implement a universal 10% tariff on all imports to the United States, which was set to increase for numerous key trading partners including the European Union (20%) and China (34%).
Scott Bessent, U.S. Treasury Secretary, noted that over 50 nations have approached the government seeking reductions on tariffs and requests for an end to currency manipulation.
President Trump cited significant trade deficits with China and the European Union as justification for imposing tariffs, describing them as necessary measures for economic correction.
He stated on social media that tariffs would bring substantial revenue to the U.S., estimated in the tens of billions of dollars.
The ongoing trade conflict has been characterized by experts as a systemic reconstruction of the global economic order.
China has reciprocated by announcing its own tariffs of 34% on U.S. imports, further heightening tensions.
During the weekend, European leaders initiated discussions ahead of a meeting of EU trade ministers in Luxembourg aimed at formulating a response to the U.S. tariffs.
In response to the market turmoil, President Trump expressed that sometimes adverse measures are necessary for long-term remedies.
Futures contracts indicated further declines in Wall Street trading for Monday, compounding previous losses from Thursday and Friday.
Israeli Prime Minister Benjamin Netanyahu is scheduled to meet with President Trump on Monday to discuss, among other issues, a new 17% tariff that the U.S. intends to impose on Israel.
Vietnam's Communist Party leader To Lam has requested a delay of at least 45 days before the implementation of a 46% tariff on Vietnamese exports to the United States, aiming to facilitate negotiations between the two nations.
Scott Bessent remarked on the potential prolonged nature of these tariff measures, noting that negotiations are complex and cannot be expedited quickly.
Meanwhile, Kevin Hassett, the chief economic advisor, dismissed claims that new tariffs would primarily harm the American economy, although he acknowledged potential increases in consumer prices.
Nonetheless, many economists anticipate that the new import tariffs may lead to rising inflation and curtail consumer spending.
The tariffs, which came into effect on Saturday, have raised fears of escalating trade tensions.
Frankfurt's stock exchange saw significant losses, plummeting by 7.86% at opening, after briefly falling more than 10%.
The Paris stock exchange dropped by 6.19%, London by 5.83%, Milan by 2.32%, and Switzerland's market declined by 6.82%.
In Asia, key indicators reflected a similar downward trend.
The Hang Seng index in Hong Kong fell by more than 13%, marking its worst day since 1997. Taiwan's stock market closed down 9.7%, the largest decline on record.
Major financial centers such as Tokyo, Shanghai, Seoul, and Taipei were also affected, particularly as many had been partially closed on Friday.
The downturn in markets followed the announcement from the Trump administration that it would implement a universal 10% tariff on all imports to the United States, which was set to increase for numerous key trading partners including the European Union (20%) and China (34%).
Scott Bessent, U.S. Treasury Secretary, noted that over 50 nations have approached the government seeking reductions on tariffs and requests for an end to currency manipulation.
President Trump cited significant trade deficits with China and the European Union as justification for imposing tariffs, describing them as necessary measures for economic correction.
He stated on social media that tariffs would bring substantial revenue to the U.S., estimated in the tens of billions of dollars.
The ongoing trade conflict has been characterized by experts as a systemic reconstruction of the global economic order.
China has reciprocated by announcing its own tariffs of 34% on U.S. imports, further heightening tensions.
During the weekend, European leaders initiated discussions ahead of a meeting of EU trade ministers in Luxembourg aimed at formulating a response to the U.S. tariffs.
In response to the market turmoil, President Trump expressed that sometimes adverse measures are necessary for long-term remedies.
Futures contracts indicated further declines in Wall Street trading for Monday, compounding previous losses from Thursday and Friday.
Israeli Prime Minister Benjamin Netanyahu is scheduled to meet with President Trump on Monday to discuss, among other issues, a new 17% tariff that the U.S. intends to impose on Israel.
Vietnam's Communist Party leader To Lam has requested a delay of at least 45 days before the implementation of a 46% tariff on Vietnamese exports to the United States, aiming to facilitate negotiations between the two nations.
Scott Bessent remarked on the potential prolonged nature of these tariff measures, noting that negotiations are complex and cannot be expedited quickly.
Meanwhile, Kevin Hassett, the chief economic advisor, dismissed claims that new tariffs would primarily harm the American economy, although he acknowledged potential increases in consumer prices.
Nonetheless, many economists anticipate that the new import tariffs may lead to rising inflation and curtail consumer spending.
