Global markets fell sharply following Trump’s sweeping tariff announcement on Liberation Day. A minimum 10% tariff on most—if not all—major US trading partners sent Wall Street into the red. Major benchmarks in Europe, the UK, and Asia also posted steep declines.
The NASDAQ lost -5.4%, the S&P 500 fell -4.4%, and the DOW dropped -3.3% as investors reacted to Trump’s aggressive tariff policy. Liberation Day introduced a minimum 10% tariff on imports from most major US trading partners, with the EU, Japan, Vietnam, and China facing even higher rates. China vowed to retaliate, fuelling fears of a more severe trade war than previously seen. Megacaps tumbled: Apple dropped -9.3% after the aggregate tariff on Chinese imports reached 54%. Nvidia fell -7.0%, and Amazon -8.4%. Retailers were hit hard, with Nike down -13.1% and Ralph Lauren -15.9%. The banks weren’t spared—Citigroup and Bank of America both fell -9.0%. Energy giants Exxon Mobil and Chevron declined -4.0% and -5.1% respectively, as crude prices also slumped. In bond markets, the US two-year Treasury yield fell -18 bps to 3.72%, while the 10-year dropped -14 bps to 4.05%.
Trump’s sweeping tariff announcement dragged European markets lower, with the STOXX 600 down -2.6% and London’s FTSE 100 falling -1.6%. The UK market saw smaller losses, likely due to its imports facing only a 10% tariff, compared to the EU’s 20%. Regional data showed the Producer Price Index (PPI) rose +3.0% year-on-year in February, up from +1.7% in January.
Liberation Day triggered a -0.9% fall in the ASX 200, after the US imposed a 10% tariff on Australia’s US$14b worth of exports. ANZ was hit with an enforceable undertaking and an additional capital penalty, falling -1.4%. Ansell sank -14.4% as its PPE manufacturing operations across Southeast Asia attracted tariffs of 24%, 36%, and 44% depending on the country. In New Zealand, the NZX 50 rose +0.1%, recovering from earlier weakness. Fisher & Paykel Healthcare also clawed back losses tied to concerns about its Mexican manufacturing exposure, closing up +0.2%. Across Asia, markets weakened. Japan’s Nikkei 225 led losses, down -2.8%, followed by the Hang Seng at -1.5%. Korea’s Kospi slipped -0.8%, while China’s CSI 300 and Shanghai Composite fell -0.6% and -0.2% respectively.
WTI Crude fell sharply (-6.7%) to US$66.94/bbl, Gold lost -0.9% to US$3,106.56/oz, Iron Ore gained +2.0% to US$104.25/MT.