Trump Tariffs Cause Stocks to Drop and Dollar to Strengthen – Asia Market Wrap
Asian equities and US stock index futures dipped, while gold reached a new high, indicating investor nervousness following Trump’s announcement of tariffs on steel and aluminium imports.
Asian stock indexes fell, pushed down by selling pressure in Hong Kong and mainland China. Contracts for the S&P 500 and Nasdaq 100 fell, as did those for the Euro Stoxx 50. Japanese markets were closed on Tuesday.
Gold, a popular safe haven in times of uncertainty, climbed for a third session, briefly exceeding $2,940 to record a new high. The Dollar index remained up from Monday.
The swings are the latest indicator that investors are failing to distinguish between threat and action within Trump’s tariffs, as well as assessing the possible consequences for global trade, corporate earnings, and inflation. While tariffs on China have gone into force, uncertainty over additional duties has raised new concerns that retaliatory measures could exacerbate a global trade war.
