Widespread stock market declines due to US tariffs

BarcelonaThe world's major financial markets have suffered heavy losses following the battery of tariffs announced by US President Donald Trump, while in the United States, markets also closed with widespread declines. The New York Dow Jones Industrial Average fell around 3.98%, the S&P 500, which represents the country's leading companies, lost 4.84%, and the Nasdaq technology index lost 5.97%. Among the major technology companies, the losses were more pronounced: Apple closed the day down 9.25% and Amazon down 8.98%.

In Europe, the Eurostoxx 50 index closed down 3.6%. The Ibex 35, the benchmark index for the Spanish stock market, fell 1.2%, one of the least pronounced declines on the continent. In Japan, the Nikkei also lost 2.7%.

The European Union is one of the trading blocs most affected by the trade tariffs announced Wednesday night by Trump. Specifically, goods produced in the EU exported to the US will be subject to a 20% surcharge once they pass through US customs. This is a significant rate, but lower than that of countries like China, where tariffs could reach 54%, but also double the 10% base tariff announced by the White House.

The battery of tariffs has caused investors to seek refuge in common values during times of market uncertainty, such as gold, which has reached record prices at $3,167.57 per ounce. On the other hand, the fact that the tariffs could lead to a slowdown in the global economy (some experts are calling for a recession in the US) and a widespread increase in inflation has brought down the prices of commodities such as oil, copper, and agricultural products such as soybeans. "The tariffs have been higher than expected and have raised concerns about slower global growth and a US recession," Vivek Dhar, commodity strategist at Commonwealth Bank of Australia, told Reuters.

Markets are also waiting for the countries affected by this wave of tariffs to respond in the coming days with new measures against the United States. In the case of the EU, European Commission President Ursula von der Leyen said on Wednesday that an escalation of trade tariffs by Washington would have "immense consequences" and would be replicated with the same intensity by Brussels.

However, the sharpest falls have been recorded on the US stock markets. The Dow Jones, Wall Street's benchmark index, was down 3.55% at 10:00 a.m. on the US East Coast (4:00 p.m. in Catalonia), while the S&P 500 - which represents the country's 500 largest listed companies - had accumulated losses of 4%. The Nasdaq, the benchmark index for the technology sector, also fell sharply at the same time, down 4.89%.

Losses in Asia

In Asia, the declines were also significant: on the Tokyo Stock Exchange, the Nikkei index fell 2.77% after sinking 4% at the opening bell. The new tariffs announced by the US president are 24% for Japan, in addition to widespread tariffs of 25% on automobile imports. In fact, Japanese automotive multinationals such as Toyota and Honda were among the stocks that lost the most during the day.

In China, the Hang Seng, Hong Kong's main index, fell 1.76% during the session, while the Shanghai Stock Exchange lost 0.24%. In South Korea, where the new "reciprocal tariffs" will reach 26%, the Seoul Stock Exchange fell 0.76%. In addition, the VNI index on the Ho Chi Minh City Stock Exchange (a benchmark in Vietnam, one of the countries most affected by tariffs) closed Thursday with a 6.68% drop.

In India, where tariffs of 26% will be imposed, the benchmark BSE Sensex index (a key indicator that represents the performance of the 30 largest and most active companies on the Bombay Stock Exchange) closed the day with a smaller loss, of 0.42%.