Stocks tumble as Trump tariff barrage eclipses earnings
Global Markets Slide as Trump Announces New Tariffs
Stocks around the world dipped as investors processed President Donald Trump’s latest tariff announcement, which could reshape global trade and impact key industries.
Key Market Movements
- FTSE 100: –0.6% to 9,075.39 points
- CAC 40: –2.2% to 7,602.50 points
- DAX: –1.8% to 23,632.38 points
- Nikkei 225: –0.7% to 40,799.60 (close)
- Hang Seng: –1.1% to 24,507.81 (close)
- Dow: –0.7% to 44,130.98 (close)
- Euro/dollar: –$0.0007 to 1.1414
- Pound/dollar: –$0.0044 to 1.3164
- Dollar/yen: –0.33 yen to 150.35
Impact on Pharmaceutical Sectors
European drug makers fell after Trump threatened steep tariffs on countries that refused to cut U.S. drug prices. Swiss officials said they would negotiate to avoid a 39% levy that would hit the nation’s pharmaceutical industry.
Technology Earnings Stunt Market Sentiment
Despite Apple’s double‑digit revenue growth and Amazon’s 35 % profit jump, analysts noted that the Ripple of uncertainty from tariffs dampened risk sentiment. Google, Microsoft and Meta also posted strong results but the overall outlook for the next quarter remained cautious.
Government Negotiations Track
- Japan, EU, Britain and South Korea have secured deals with Washington.
- China remains in talks to extend a fragile truce established in May.
- Trump has postponed tariff implementations several times, most recently pushing the open‑declaration deadline to August 7.
Tariff Rates and Targets
The president unveiled new levies on nearly 70 countries, including a 35 % tariff on Canada and rates ranging from 10 % to 41 % on targeted sectors. The goal is to reshape global trade structures in favor of the U.S. economy.
Financial Outlook
Analyst Kathleen Brooks, research director at XTB, noted that “Tariffs are the main theme sucking risk sentiment from financial markets.” She added that the upcoming U.S. payroll data could further influence market direction.
