On Friday, the U.S. dollar surged following new tariff measures announced by President Donald Trump, affecting stock markets in Asia and Europe.
Impact of Tariffs on Markets
The new tariff measures announced by President Trump range from 10% to 41%. Additionally, a 40% penalty will be imposed on any goods rerouted through third countries to evade existing duties. This announcement triggered sharp fluctuations in global markets, especially following weak earnings reports from tech companies.
Asia's Reaction to New Measures
In Asia, indexes began to decline immediately. Japan's Nikkei 225 closed down 243.99 points (0.59%). South Korea's KOSPI fell 117.23 points (3.61%). In Hong Kong, the Hang Seng Index dropped 150.71 points (0.61%). Tech companies were particularly affected, with Tokyo Electron plunging 17%.
Uncertainty in European Markets
European markets opened lower. London's FTSE 100 fell by 0.2%, while Germany's DAX was down 0.6%. The new tariff structure created confusion in global trade, as the White House stated that products rerouted to bypass U.S. duties would incur an additional 40% penalty. This uncertainty bred a wave of risk-off sentiment among investors.
President Trump's new tariffs have led to significant fluctuations in financial markets both in Asia and Europe. Investors remain cautious, awaiting further clarification and potential implications.
