HONG KONG – Global markets experienced a significant slide as uncertainty loomed over the potential impacts of the newest tariffs imposed by U.S. President Donald Trump. Investors closely monitored the effects on various sectors, from Big Tech stocks to crude oil prices, as the S&P 500 and Dow Jones Industrial Average futures dropped by 0.8% and 1% respectively.

The repercussions of Trump’s “Liberation Day” tariffs extended far and wide, causing a dip in not just stock markets but also in the value of the U.S. dollar against other currencies. Traditional safe haven assets like gold, which recently reached record highs, were also affected by the announcement.

In European trading, major indices saw declines after Germany reported unchanged factory orders, suggesting manufacturers were gearing up for potential tariff impacts. The DAX in Germany fell by 2%, the CAC 40 in France slipped by 1.6%, and Britain’s FTSE 100 gave up 1.7%.

While markets in some Asian countries were closed for holidays, others like Tokyo and South Korea observed significant drops in their respective indices. The Nikkei 225 in Tokyo lost 2.8%, and South Korea’s Kospi sank by 0.9%, as the two U.S. allies focused on negotiating lower tariffs with the Trump administration.

The implications of the tariffs ricocheted across global markets, with Australian stocks dropping by 2.4% on Friday. The U.S. dollar saw fluctuations against currencies like the Japanese yen and the euro as investors grappled with the potential economic consequences of the tariffs.

In a significant move, Trump announced a minimum tariff of 10% on global imports, with higher rates for products from certain countries like China and the European Union. Economists warned that these tariffs could lead to a sharp decline in economic growth and an increase in inflation, potentially unsettling the markets further.

As fears loomed over the long-term effects of the tariffs, investors remained cautious, with Wall Street already experiencing a downturn before the official announcement. The Federal Reserve’s role in potentially cutting interest rates to support the economy was also scrutinized, as lower rates could amplify inflation concerns already on the rise due to the tariffs.

Amidst the market turbulence, the future remains uncertain as investors brace for potential disruptions in various sectors and the broader economic landscape. The impacts of Trump’s tariffs are anticipated to unfold gradually, shaping the trajectory of global markets in the coming months.