GLOBAL stock markets have tumbled, with investors flocking to bonds, gold, and the yen, following the unexpected announcement by US President Donald Trump of larger-than-expected tariffs on imports, which are disrupting global trade and supply chains.
Reuters reported today that the technology sector, which has been on a strong upward trajectory recently, has been particularly hard hit, as manufacturing hubs in China and Taiwan are now facing new tariffs exceeding 30%, pushing the overall levy on imports from China to as much as 54%.
Futures for the Nasdaq fell by 3.3%, and in after-hours, including major players in the sector.
Apple, which manufactures its iPhones in China, was the hardest hit, with its stock plunging by nearly 7%.
Futures for the S&P 500 dropped by 2.7%, while FTSE futures fell by 1.6%. European stock futures also saw a decline of nearly 2%.
Meanwhile, gold surged to a new record high, reaching over US$3,160 per ounce, as investors sought safe-haven assets in response to the growing market uncertainty. Oil prices, often seen as a barometer for global growth, fell by more than 2%, with Brent crude futures dropping to US$73.24 per barrel.
Japan’s Nikkei index slumped by 2.8%, dipping to an eight-month low earlier in the day. Almost all components of the index saw declines, particularly shipping companies, banks, insurers, and exporters.
The MSCI index for Asia-Pacific stocks outside Japan dropped by more than 1.0%.
US Treasury bond yields fell by 14 basis points to a five-month low of 4.04%, as investors braced for slower growth in the US. Futures for interest rates are now pricing in the likelihood of rate cuts in the coming months.
Earlier, Trump announced a 10% base tariff on imports, with higher duties on goods from several countries, particularly in Asia. The announcement has sent shockwaves through global markets, escalating trade tensions further. – April, 3, 2025
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