Global markets reacted violently after the US President Donald Trump had discovered long-announced plans on the introduction of customs.
Investors panicly pulled money from American stock market indices, and the shares of the firms that depend on the global supply chains were struggled.
Futures S & P 500 indexes, which show where the index could be after opening on Thursday, fell by 3%.
Nasdaq 100 futures fell more than 4%, and Dow futures slipped by about 1000 points, ie 2%.
These indices were already in the worst quarter in recent years, mostly due to increasing concerns about the economic consequences of the Trump Customs Plan.
Global markets have also recorded significant losses for several minutes after opening. Japanese Nikkei 225 has fallen more than 4.1%, South Korean Kospi more than 2.5%, and Australian ASX 200 weakened by about 2%. ETFs (stock-insigned funds) who follow individual countries, such as India, fell about 3%, while one who accompanies Europe has fallen 2%, and the Chinese ETF sank 3.8%.
The first market reactions suggested that many investors expected significantly milder customs. In addition to a fixed customs of 10% for all trade partners, Trump has also announced reciprocal customs burdens that many countries would tax with more than 20%.
“President Trump had just finished his duty speech in the White House and we could describe this series from the worst scenario ‘which Wall Street was adopted,” Ives was written by Ives, analysts of the Wedbush Securities.
Apple, Amazon, Walmarta, Stellantisa
This could create major problems with American companies that are deeply integrated into the global economy. Apple shares fell almost 7%, Amazon 6%, and Walmarta 5%.
Nike, who produced 50% of his footwear last year in Vietnam, sank 7% in trading after the exchange of the stock exchange.
Shopping chain shares that sell goods at reduced prices (which imports a large part of their best-selling items) also suffered great losses. Five Below fell by 13.5%, and Dollar Tree more than 11%.
When asked whether he is worried about market earthquakes, the American Finance Minister Scott Bessent said for Bloomberg that “learned not to watch what happens in the markets outside of working hours.”
Bessent added that Nasdaq has no problem with a magazine than with “seven magnificent”, as the shares of seven large technological companies are called.
General Motors and Ford fell less than 1%, but Stellantis, the owner of Jeep, slipped by almost 2%. Stellantis has more production facilities in Europe than other US car manufacturers.
Goldman Sachs estimates that the price of a car produced abroad could rise up to $ 15,000 for Trump customs. Even the vehicle composed in the USA could rise up to $ 8,000, according to the assessment of the analysts of that bank.
Growth of yen and Frank, falling dollars
Due to the insecurity in the financial markets, the courses of Japanese and Swiss Frank, the currency that are considered a safer refuge for capital in preceivation times, while the value of the US dollar is considered the most important currency.
The price of gold, which is also considered a safe haven, moves, on the other hand, on record levels, above $ 3,160 per ounces.
It is obvious, analysts say, to follow a difficult day on world stock exchanges because American customs will harm international trade and economy growth.
Given that the 10 percent customs on all imports in the United States, as well as additional customs duties on imports from individual countries from 20, and even more percent, will probably increase and inflation.
“The effective customs rate seems to have reached the highest levels in more than a century in the US,” says Ben Wiltshire, Strategist in Citi.
