News Digest: Trump’s Tariffs Shake Markets as Investors Flee to Safe Havens
April 4, 2025
News Digest:
Global markets tumbled as Donald Trump announced sweeping tariffs, exceeding expectations and disrupting global trade. Investors scrambled to safer assets, sending gold to record highs and pushing bond yields lower.
Technology stocks bore the brunt of the announcement, as manufacturing hubs in China and Taiwan faced tariffs exceeding 30%. Overall, China now faces an unprecedented 54% tariff on exports to the U.S.
The Nasdaq plunged 3.3% in after-hours trading, erasing $760 billion in market value from the “Magnificent Seven” tech giants. Apple, heavily reliant on Chinese manufacturing, led losses with a 7% drop. S&P 500 futures slid 2.7%, while European and FTSE futures declined nearly 2%.
Gold soared past $3,160 per ounce, while Brent crude oil sank 2% to $73.24 per barrel, reflecting fears of slowing global growth. Benchmark 10-year U.S. Treasury yields fell 14 basis points to a five-month low of 4.04%, as investors braced for economic uncertainty.
Japan’s Nikkei 225 slumped 2.8%, hitting an eight-month low, with heavy losses across shipping, banking, and export sectors. South Korea’s Kospi plunged 2%, while Hong Kong’s Hang Seng Index dropped 1.6%. The Chinese yuan weakened to a two-month low.
Trump imposed a 10% baseline tariff on all imports, with higher rates for key partners: China (34%), Japan (24%), Vietnam (46%), South Korea (25%), and the EU (20%). A crackdown on low-value Chinese imports further tightens restrictions on e-commerce giants.
Markets now brace for retaliatory measures, with analysts warning of an increased U.S. recession risk if the tariffs remain unchanged.
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