Stock Market LIVE: Donald Trump’s reciprocal tariff announcement to mark ‘liberation day’ for the US increased fears of a global recession due to higher inflation and a potential hit in corporate earnings
tock Market Live: US President Donald Trump’s reciprocal tariff announcement on several trade partners, including India and the EU, sent yet another shockwave across the global markets amid worries of a fall in corporate earnings and higher inflation. A 10 per cent “baseline tariff” takes effect at 12:01am (0401 GMT) on April 5, while elevated rates for those the White House deemed “the worst offenders” kick in at 12:01am on April 9, according to a news agency AFP report.
While the European Union faces a 20 per cent rate and China 34 per cent, Trump has imposed a 26 per cent added rate on India and 25 per cent on South Korea and 24 per cent on Japan.
Trump’s reciprocal tariffs | Key points
• A commerce ministry official told news agency PTI that the impact on India was a “mixed bag and not a setback”. The official also said that the ministry was analysing the impact on India’s trade and noted that the Trump administration has expressed willingness to slash tariff rates if its concerns on trade are addressed.
• In the United States, stocks future fell as Trump spoke, with S&P 500 futures ending with a shrink over 3.5% while contracts on the Nasdaq 100 slid 4.5%. S&P 500 finished Wednesday’s regular trading session 8% below its February record high.
• In currencies, the dollar fell 0.9% against the yen at 148 yen, while the Mexican peso was about 0.4% lower. Prices of “safe haven” assets such as gold and treasury rose.
• West Texas Intermediate, the US oil price, and copper, a popular measure of global output, both fell at least 2% early Thursday in Asia.
• Apple Inc., whose supply chain is heavily dependent on China, fell as much as 6.9% as Beijing was slapped with a 34% tariff rate.
• Chipmakers such as Nvidia Corp. and Advanced Micro Devices Inc. were down, as were multinationals Caterpillar Inc. and Boeing Co.
• Adam Hetts at Janus Henderson Investors told Bloomberg that “Eye-watering tariffs on a country-by-country basis scream ‘negotiation tactic,’ which will keep markets on edge for the foreseeable future.”
• Don Calcagni, chief investment officer at Mercer Advisors, said the tariffs are ill-suited for the global economy. “We are very early innings on what could unfortunately turn into a very serious global trade war,” Calcagni told Reuters.
