U.S. dollar slides, Wall Street losses expected as global markets react to tariffs

Thomson Reuters

· Posted: Apr 03, 2025 7:13 AM EDT | Last Updated: 17 minutes ago

President Donald Trump's caller tariffs sent shockwaves done markets connected Thursday, with the U.S. dollar and American stocks among the hardest deed connected fears a broadening commercialized warfare volition spur recession successful a fragile satellite economy.

Trump said helium would enforce a 10 per cent baseline tariff connected each imports to the United States and higher duties connected immoderate of the country's biggest trading partners. The caller levies ratchet up a commercialized warfare that Trump kicked disconnected connected his instrumentality to the White House, rattling markets arsenic fears turn that these moves could trigger a crisp planetary economical slowdown and substance inflation.

Stock markets tumbled and investors dashed to the comparative information of bonds, golden and the yen. S&P 500 futures dropped three per cent, suggesting investors expect heavy losses erstwhile Wall Street opens aboriginal successful the day.

U.S. Treasury yields slid, China's yuan dropped to a seven-week low, and the dollar came nether dense selling pressure.

The dollar index, which measures the U.S. currency against six others, fell 1.6 per cent to 102.03, its lowest since aboriginal October. The dollar scale is down much than 5.7 per cent this year.

The euro, the largest constituent successful the index, gained 1.5 per cent to a six-month precocious of $1.1021 US.

The yen strengthened to a three-week precocious against the dollar and was past up 1.7 per cent astatine 146.76 per dollar, portion the Swiss franc touched its strongest level successful 5 months astatine 0.86555 per dollar.

"It's precise hard really to spot however different countries marque concessions that would promote the U.S. to assistance these tariffs. And I deliberation that's a large underpriced risk," said Nicholas Rees, caput of macro probe astatine Monex Europe.

Big tech, retailers consciousness aboriginal pain

Apple sank 6.5 per cent, deed by an aggregate 54 per cent tariff connected China — the basal for overmuch of Apple's manufacturing. Microsoft dropped 1.8 per cent, Nvidia slipped 3.5 per cent and Amazon.com fell 5.1 per cent.

"Eye-watering tariffs connected a country-by-country ground shriek 'negotiation tactic,' which volition support markets connected borderline for the foreseeable future," said Adam Hetts, planetary caput of multi-asset and a portfolio manager astatine Janus Henderson Investors.

WATCH | Prices for caller cars, car parts expected to rise: 

Retailers were deed hard connected Thursday, with Lulemon falling 10.3 per cent, Nike dropping 8.3 per cent and Walmart 6.2 per cent aft Trump imposed immoderate of the astir punitive tariff rates connected large accumulation hubs including Vietnam, Cambodia, Indonesia and China.

Auto manufacture heavyweights were besides also down — General Motors by two per cent and Tesla falling astir five per cent.

Wall Street's fearfulness gauge, the CBOE Volatility index, touched a three-week precocious astatine 25.64 points.

EU plots response

EU main Ursula von der Leyen described the tariffs arsenic a large stroke to the satellite system and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.

Von der Leyen said the EU was already finalizing a archetypal bundle of tariffs connected up to 26 cardinal euros ($28.4 cardinal US) of U.S. goods for mid-April successful effect to American steel and aluminum tariffs that took effect connected March 12.

"And we're present preparing for further countermeasures to support our interests and our businesses if negotiations fail," von der Leyen said successful a connection she work retired successful the Uzbek metropolis of Samarkand connected Thursday, up of an EU-Central Asia concern summit.

LISTEN l Potomac Strategy Group's Eric Miller, planetary commercialized consultant, connected the tariffs:  

The EU besides faces 25 per cent U.S. tariffs connected alloy and aluminum tariffs, connected cars from Thursday and connected car parts wrong a month, with pharmaceuticals perchance to come.

French President Emmanuel Macron connected Thursday volition big representatives of concern sectors that volition beryllium deed by the caller tariffs, which use from Saturday.