International inventory markets tumbled on Thursday morning following President Donald Trump’s announcement of a raft of tariffs on America’s commerce companions — together with a minimal baseline tariff of 10% on all nations.
Asian markets led the slide. Japan’s Nikkei index dropped 4% after opening, Hong Kong’s Hold Seng Index slid 2.4%, South Korea’s KOSPI fell 2.7% and Australia’s ASX 200 fell 2%.
U.S. markets closed up forward of Trump’s Wednesday Rose Backyard presentation, however inventory futures dropped on Wednesday night time. Dow Jones futures plummeted 2.7%, S&P 500 futures sank 3.9% and futures tied to the NASDAQ 100 dropped 4.7%.
Foreign money merchants watch screens close to a display exhibiting the Korea Composite Inventory Worth Index (KOSPI) on the international alternate dealing room of the KEB Hana Financial institution headquarters in Seoul, South Korea, on April 3, 2025.
Ahn Younger-joon/AP
American buying and selling companions reacted to Trump’s tariffs announcement with condemnation and concern.
China — hit with 34% tariffs on China comes on high of 20% tariffs he beforehand introduced — urged the U.S. to “instantly cancel its unilateral tariff measures and correctly resolve variations with its buying and selling companions via equal dialogue,” a Chinese language Ministry of Commerce spokesperson stated in a press release.
The tariffs will “endanger international financial improvement and the steadiness of the availability chain,” they added.
The European Union — now dealing with a 20% tariff — stated it had a “sturdy plan to retaliate,” which European Fee President Ursula von der Leyen is about to ship on Thursday. “The common tariffs introduced by the U.S. are a significant blow to companies and shoppers worldwide,” von der Leyen stated in a put up to X on Thursday.
“Europe is ready to reply,” she added. “We’ll at all times defend our pursuits and values. We’re additionally prepared to have interaction. And to go from confrontation to negotiation.”
In a Fb put up, Italian Prime Minister Giorgia Meloni referred to as the tariffs focused towards the European Union “fallacious.”
President Donald Trump gestures whereas talking throughout a commerce announcement occasion within the Rose Backyard on the White Home, on April 2, 2025, in Washington, D.C.
Andrew Harnik/Getty Pictures
She added, “We are going to do all the pieces we will to work in the direction of an settlement with the USA, with the purpose of avoiding a commerce warfare that may inevitably weaken the West in favor of different international gamers.”
In Japan, Chief Cupboard Secretary Yoshimasa Hayashi stated Tokyo “as soon as once more conveyed to the U.S. authorities that the latest measures are extraordinarily regrettable and have strongly requested that they be reconsidered.” Japan is dealing with 24% tarrffs.
The measures, he added, “might have a big impression on financial relations between Japan and the U.S., and in the end on the worldwide financial system and the multilateral buying and selling system as an entire.”
South Korea’s appearing President Han Duck-soo instructed the federal government to “pour out all of its capabilities at its disposal to beat this commerce disaster,” in a press release quoted by the Yonhap information company.
Han described Trump’s measures — which included 25% tariffs for all South Korean items — as “very grave” and warned of “the strategy of the truth of a world tariff warfare.”
ABC Information’ Jack Moore, Leah Sarnoff and Will Gretsky contributed to this report.
