In a dramatic twist that felt like riding a roller coaster 🎢, global markets took a hit as huge U.S. tariffs sent shockwaves through the technology sector. On Thursday, investors scrambled to bonds, gold, and the yen to dodge a financial storm.
U.S. President Donald Trump announced a sweeping tariff package that includes a baseline 10% tariff on imports and even higher levies on key trading partners. Manufacturing hubs in the Chinese mainland now face tariffs above 30%, part of a total hike that has raised overall levies to around 54% on imports from the region.
Citi's global rates trading strategist Ben Wiltshire noted that the U.S. effective tariff rate on all imports appears to be the highest in over a century. His insight rang true as Nasdaq futures tumbled 4% and nearly $760 billion evaporated from the market value of major tech leaders. Apple shares, for instance, dropped nearly 7% as production in the Chinese mainland was hit hardest.
The impact wasn’t limited to the U.S.: S&P 500 futures slipped 3.3%, FTSE futures dipped 1.8%, and Tokyo’s Nikkei plunged to an eight-month low. Meanwhile, investors flocked to safe havens—gold soared to a record above $3,160 an ounce, while oil slid over 3%, reflecting global growth concerns.
Tariffs also targeted other economies, including Japan with a 24% levy, Vietnam at 46%, South Korea at 25%, and the European Union at 20%. Economists like Jeanette Gerratty, chief economist at wealth advisory Robertson Stephens in Menlo Park, California, warned that these comprehensive tariffs pose significant risks to global trade.
This unfolding drama reminds us that in today’s interconnected world, even blockbuster tech giants aren’t immune to policy shifts. Buckle up and stay tuned as we follow this wild economic ride impacting tech, trade, and everyday life!
Reference(s):
cgtn.com
