Global Markets React to Trump’s Tariff Policies and Economic Concerns

Uncertainty over U.S. trade tariffs and recession fears drive stock volatility, currency shifts, and central bank decisions.

Asian and global stock markets face volatility as U.S. tariffs on steel and aluminum imports take effect, with mixed performances across indices.
The S&P 500 briefly dipped over 10% below its recent record high, while the Nasdaq saw its largest single-day drop since 2022, reflecting investor anxiety over U.S. economic growth.
The Canadian dollar hit a one-week low as President Trump threatened, then reversed, a plan to double tariffs on Canadian steel and aluminum to 50%, prompting expectations of a Bank of Canada rate cut.
The euro reached a five-month high against the dollar, supported by optimism over a potential Ukraine ceasefire and Germany’s defense spending plans, as the dollar weakened on recession concerns.
Oil prices rose slightly, while gold gained as a safe-haven asset, with investors also watching upcoming U.S. inflation data for signs of economic direction.