US stock markets crashed sharply on April 3 after new import tariffs announced by President Donald Trump triggered panic across global markets. By mid-session in the US, major indices were deep in the red with heavy selling seen in key sectors like technology, auto, and consumer goods.
The Nasdaq index was trading 4.67 percent lower at 16,778.43, while the S&P 500 had dropped nearly 4 percent to 5,461.65. The Dow Jones Industrial Average also fell sharply by 2.72 percent to 41,074.58. The US dollar index weakened too, trading down 1.2 percent at 102.2, showing global investor nervousness.
Reports said that nearly $2 trillion was wiped off from the S&P index in early trading as investors worried that the fresh tariffs may slow down the US economy and even lead to a recession. Bloomberg stated that this new tariff move could be the biggest tax hike since 1968 and may push prices higher by 1.5 percent this year. Top global brands like Apple and Nike, which depend on global supply chains, faced major selling pressure.
Car stocks were similarly impacted as the US started enforcing tariffs at the level of 25 percent on imported cars. CNBC emphasized that the small-cap stocks fared the worst, with the index of the Russell 2000 down by 6.5 percent, the worst one-day performance since June 2020.
The panic also spilled over in the European markets. Britain’s FTSE 100 plunged by 1.7 percent to 8,474, making it its worst trading day in eight months. France’s CAC 40 dropped by 3.4 percent to 7,598 and Germany’s DAX by 3 percent at 21,700. Even the Stoxx 600, a gauge for European stocks, finished almost 3.9 percent lower.
In the meantime, the international tension increased even more after Canadian Prime Minister Mark Carney revealed that Canada will subject US-produced vehicles that are not in line with the CUSMA free-trade deal with tariffs of 25 percent. This move has been regarded as a retaliatory response by the US, heightening the specter of a global trade war.
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Source: Moneycontrol.
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