The U.S. dollar surged sharply on Friday morning as stock markets across Asia, Europe, and the United States reacted nervously. The turmoil followed a surprise announcement by President Donald Trump, who unveiled a new round of global tariffs just hours before the key August 1 deadline.

The updated measures, ranging from 10% to 41%, now include an additional 40% penalty on any goods rerouted through third countries in an attempt to circumvent existing tariffs — a major shift in trade policy.

This announcement came at a time when global markets were already under pressure from weak earnings reports from tech firms and upcoming U.S. jobs data.


🔹 U.S. futures react with immediate decline

S&P 500 futures fell 0.16%, Nasdaq 100 dropped 0.23%, and Dow Jones was down 67 points. Amazon took the hardest hit with a more than 6% drop after issuing a gloomy earnings forecast. In contrast, Apple rose 2% after beating revenue and profit expectations.

Asia Takes the First Blow

Asian indexes sank swiftly after the new tariff schedule was released:

🔹 Japan's Nikkei 225 fell 0.59%

🔹 South Korea's KOSPI plunged 3.61%

🔹 Hong Kong's Hang Seng dropped 0.61%

🔹 Australia's ASX 200 slid 0.89%

🔹 India's Nifty 50 dipped 0.29%

Tech companies were hit the hardest. Tokyo Electron plummeted 17%, SK Hynix fell 5.12%, and Taiwan's TSMC dropped 1.72%.

📉 Meanwhile, the Chinese yuan rapidly weakened and is on track for its worst week in over six months. China’s central bank set the reference rate lower than expected, signaling ongoing pressure.

Europe Opens Lower Amid Global Uncertainty Over Tariffs

While Asia stumbled, Europe followed suit with weak openings:

🔹 London FTSE 100 down 0.2%

🔹 Germany’s DAX opened down 0.6%

🔹 France’s CAC 40 was flat

🔹 Italy’s FTSE MIB dipped 0.1%

🔹 Euro Stoxx 50 lost 0.5%

The new tariff structure has caused confusion in global trade departments. While the White House announced an additional 40% penalty on rerouted goods, it did not clarify how it would enforce this. This vagueness triggered a wave of risk aversion, with investors unsure how far-reaching the impact might be.

Major European companies like AXA, Daimler Truck, and Engie were lined up to report earnings — but the markets were already shaped by a single factor: Trump’s trade shock.

#TRUMP , #Tariffs , #GlobalMarkets , #stockmarket , #Geopolitics

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