Trump’s tariffs cause the largest decline in US stocks since 2020 such as China, the EU is condemned to retreat

Global actions sank, a day after President Donald Trump has announced that he is covering new tariffs that are predicted to raise prices and weigh growth in the US and abroad.

The Stock Markets in the Asia -Tihoetan region fell for the second day, after the S&P 500, which traces 500 of the largest American companies, has immersed by 4.8% -its oldest day since Covid collapsed the economy in 2020.

Nike, Apple and Target were among the big names of the users who are the strongest, all of which sink more than 9%.

At the White House, Trump told reporters that the US economy would “boom” as he stood in his decision to impose a minimum of 10% of the import tariff, which he claims to increase federal revenue and bring US production at home.

The Republican president plans to hit products from dozens of other countries with far higher levies, including trading partners such as China and the European Union.

China, faced with a total of 54% tariff, and the EU, which faces a 20% debt, both promised revenge on Thursday.

Tariffs are taxes on goods imported from other countries, and Trump’s plan, which he has announced on Wednesday, will reach such obligations to some of the highest levels in more than 100 years.

The World Trade Organization said it was “deeply concerned”, evaluating that trade volumes could shrink as a result of 1% this year.

Traders have expressed concern that tariffs can lead to inflation and retain growth.

In early Friday trade, Japan’s Nikkei 225 indicator fell by 1.8%, Kospi in South Korea was about 1%lower and the ASX 200 in Australia, reduced by 1.4%.

On Thursday, the S&P 500 threw approximately $ 2TN worth, continuing a sale that lasted in mid -February against the background of fearships from the trade war.

Dow Jones closed about 4% more, while Nasdaq fell apart by approximately 6%.

The United Kingdom Share Index has dropped by 1.5%, and other European markets also fell, with an echo decreasing from Japan to Hong Kong.

On Thursday, the White House Trump doubled on Gambit with high bets aimed at turning a decades of liberalization, led by the United States, which formed the world trade order.

“I think it’s going very well,” he said. “It was an operation, as when the patient was operating, and that was a big thing. I said that would be the case.”

He added: “Markets will evolve. Shares will develop. The country will grow.”

Trump also said he was open to negotiations with trading partners about tariffs, “if someone says we will give you something that is so phenomenal.”

On Thursday, Canada Prime Minister Mark Carney said the country would avenge a 25% vehicle fee paid by the United States.

Last month, Trump imposed tariffs of 25% on Canada and Mexico, although he did not announce new obligations on Wednesday against commercial partners in North America.

Companies are now facing the choice of rate absorption, working with partners to share this weight or transmit to consumers – and risk a decline in sales.

This could have a big impact, as US consumer costs amounted to about 10% – 15% of the world economy, according to some estimates.

While the shares fell Thursday, the price of gold, which was regarded as a more fierce advantage in times of turbulence, touched a record high from $ 3.167.57 at one point on Thursday before falling back.

The dollar also weakened with many other currencies.

In Europe, tariffs could glue growth with almost a percentage point, with a more hit, if the block reveals, according to analysts at Principal Asset Management.

In the US, the recession is likely to take place without other changes, with major tax reductions, which Trump also promised, warned Seema Shah, a major global strategist at the company.

She said Trump’s goals for raising production would be a long -standing process, “if that happens at all.”

“Meanwhile, the steep import tariffs are likely to be the immediate drag of the economy, with limited short -term benefit,” she said.

On Thursday, Stellantis, which makes Jeep, Fiat and other brands, said it was temporarily stopping production at a factory in Toluca, Mexico and Windsor, Canada.

It states that this move, a 25% tax response to car imports, will also lead to temporary cuts of 900 people in five plants in the United States that deliver these factories.

In the Nike Stock Market, which makes much of its sportswear in Asia, it was one of the most severe strikes of S&P, with the shares reducing by 14%.

Apple shares, which rely largely to China and Taiwan, have broken up by 9%.

Other retailers also fell, the aim of reducing approximately 10%.

Harley-Davidson motorcycle manufacturer was the subject of EU canceled rates during Trump’s first term as a 10%president.

In Europe, the shares in the sportswear company Adidas fell by over 10%, while shares in the competitive Puma lowered over 9%.

Among the luxury goods companies, the jewelry manufacturer Pandora fell by more than 10%and LVMH (Louis Vuitton Moet Hennessy) dropped above 3%after the tariffs were imposed on the European Union and Switzerland.

“You see that retailers are being destroyed at the moment because tariffs extended to countries we did not expect,” says Jay Woods, a major global strategy of Freedom Capital Markets, adding that he expects more turbulence forward.