The tariffs announced by Trumpmore severe than expected, they shook the markets on April 3, and Wall Street registered their worse losses since the first days of pandemic of Covid-19.
Wall Street closed the day red: the S&P 500 lost 5.97 %, the Nasdaq 5.82 % and the Dow Jones of Industrials 5.5 % after the last section of highly volatile operations due to the fear that a commercial war is unleashed and that it causes a recession.
The dollar managed to recover land after the marked fall recorded by the fears of a recession in USA.
Read more: the list of the 185 countries that Donald Trump imposed new reciprocal tariffs
“Investors are plunged into the ‘take out the money already’, for fear that other countries will follow the example of China And, in addition, for the fear that the president of the United States responds to China’s tariffs with even more levies, ”Chris Beauchamp, Chief of IG Markets, told AFP.
“This Commercial War It does not resemble anything we have seen in years, maybe decades, ”he added.
In Asia, investors continued to sell their shares. Tokyo closed with a 2.75 %drop, and the losses were very marked in the contributions of car manufacturers: Toyota dropped 4.0 %; Nissan and Honda suffered a collapse of more than 5.0 %.
The bearish trend also felt in Seoul, which fell 0.86 %, and in Sydney, where the bag gave up 2.44 %. The Chinese bags were closed for being a holiday.
Debacle in European Stock Exchange
In Europe, after the strong losses of the eve, the announcement that China will impose additional tariffs of 34 % American goods shook markets.
The Paris Cac 40 registered its worst day since March 2022 and gave 4.26 % to the closure. Frankfurt and London fell 4.95 %. In Madrid, Ibex 35 closed with 5.83 % losses and Milan fell 6.53 %.
The announcement also destabilized oil, which the eve has already accumulated losses, and this Friday the negative streak continued. Brent barrel from the North Sea, with delivery in June, fell 6.91 % to US $ 65.29 around 16.00 GMT.
During the day, this marker Briefly went to US $ 64.03 per barrela minimum since April 2021.
For its part, the West Texas Intermediate (WTI), for delivery in May, the reference in the United States, gave 7.80 % to US $ 61.73.
Another raw material that fell strongly was The copper, which collapsed more than 5.0 %. This metal is vital for energy storage, the manufacture of electric vehicles and wind turbines.
“An expansive wave”
“On April 2 it will continue to be a turning point in the history of world trade. Donald Trump’s ads They have triggered an expansive wave”Said John Plassard, Mirabaud investment specialist.
The new tariffs announced by the United States range, according to countries, among a minimum of 10 % and 54 % accumulated in the case of China.
Products from the European Union will be subject to tariffs of 20 %.
Trump confirmed Friday that he will not change the course and told investors that “never” will modify their policies.
“The markets suffered new chills when the threat of a retaliation of China”, Explained Susannah Streeter, by Hargreaves Lansdown.
“The great concern is that this is a sign of a strong escalation of the tariff war that has great implications for the world economy,” he added.
Falls after Powell reactions for tariffs
Wall Street deepened the falls This Friday at half session and registered losses greater than 4.0 %, attentive to the tariff counterpoint initiated by President Donald Trump and after the pronouncement from the president of the Federal Reserve, Jerome Powell.
At 12.23 ET in the New York Stock Exchange (16.23 GMT), the Nasdaq technological fell 4.79 %, the selective S&P 500 gave 4.68 %and the Dow Jones of Industrials retroced 4.03 %.