Global Markets Plunge as Trump’s Tariff Decision Sparks Uncertainty: Stocks Tumble, Gold Soars

Global financial markets faced significant turmoil on Wednesday after U.S. President Donald Trump announced sweeping new tariffs, primarily targeting China and the European Union. The move has raised fears of escalating trade tensions, sending shockwaves through stocks, commodities, and currencies.

Despite the announcement coming after Wall Street’s regular trading hours, its immediate effects were evident in futures markets. The Dow Jones Industrial Average, Nasdaq Composite, and S&P 500 futures all experienced sharp declines.

Technology stocks, heavily reliant on international supply chains, suffered considerable losses, with major companies like Apple, Nvidia, and TSMC seeing significant after-hours drops. The clothing and retail sector also struggled, as tariffs on Chinese and Vietnamese-made goods led to sharp declines for brands like Gap, Ralph Lauren, and Nike.

Amid the uncertainty, gold emerged as a safe-haven asset, reaching a new record high of approximately $3,160 per ounce. Since the beginning of 2025, gold prices have surged nearly 20%, reflecting growing investor concerns over trade policies and economic stability.

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The bond market also reacted strongly, with the yield on the ten-year U.S. Treasury note falling to 4.10% as investors sought safety in government bonds.

A significant drop in the U.S. dollar followed, losing more than 1% against the euro after the announcement. When Trump began his second term, the euro was valued at $1.04; by Wednesday evening, it had climbed to around $1.09.

Even the cryptocurrency market was not spared, with Bitcoin dropping more than 3% as investors assessed the implications of heightened trade tensions.

Market analysts believe these tariffs could serve as a negotiation tactic rather than a permanent shift in policy. Chris Zaccarelli of Northlight Asset Management noted that while traders are reacting swiftly, the long-term impact will depend on how negotiations unfold. Investors now face continued uncertainty, with close attention on possible retaliatory measures from China, the EU, and other affected nations.