The Booming Markets: Trump's Tariffs Cause A Global Shock

The new tariffs imposed by Donald Trump have triggered a shockwave in global financial markets, leading to an immediate reaction from investors, economists, and the United States’ allies.

Storm on the markets after Trump’s shocking announcement

Donald Trump announced on April 2, 2025, from the White House a series of historic protectionist measures. In a solemn speech lasting nearly 45 minutes, the American president unveiled what he called the “Day of Economic Liberation“.

He decreed a base tariff of 10% applicable to all trading partners of the United States. Some countries face significantly higher rates: 20% for the European Union, 34% for China, 46% for Vietnam, and 24% for Japan.

These measures, which also include tariffs of 25% on automotive imports, have caused a real earthquake in financial markets.

European stock indices opened sharply lower, with the STOXX Europe 600 index losing about 1.8%, particularly hit was the German DAX index.

Companies like Pandora, Adidas, and Puma saw their stocks drop by 10%, while heavy industry giants like Siemens and ThyssenKrupp lost 4% and 3.4% respectively.

In the United States, the technology sector was severely impacted, with Apple falling more than 6% after the announcement, dragging down other giants like Nvidia (-4%), Tesla (-4.5%), Alphabet, Amazon, and Meta (between -2.5% and -5%).

Allies are worried, partners threaten to retaliate

In response to this trade offensive, international reactions have been swift. The European Union quickly expressed its intention to take countermeasures if negotiations fail.

Ursula von der Leyen, President of the European Commission, called Trump’s decision a “serious blow” to the global economy, lamenting the “chaos and complexity” created by these measures.

The United Kingdom, affected by a 10% tariff, opted for diplomacy. Jonathan Reynolds, Secretary of State for Business, stated that “no one wants a trade war“, while clarifying that “nothing is excluded” to defend British interests.

China, facing the highest rate with a combined total of at least 54%, reacted strongly, urging the United States to cancel these measures and promising to “resolutely take countermeasures“.

According to the Chinese Ministry of Commerce, these tariffs “violate the rules of international trade” and represent “a typical unilateral intimidation act“.

The crypto market has also felt the backlash, as Ryan Lee from Bitget Research explains:

Trump’s unexpectedly severe tariffs have triggered a massive sell-off, with ETH and SOL dropping by about 6%, and a retreat towards stablecoins in the face of rising concerns.

These protectionist measures threaten the global economy in the long term. According to Olu Sonola from Fitch Ratings: “This is a radical change for the global economy” that could plunge “many countries into recession” if these tariffs persist.

The coming days will be crucial to assess the repercussions of this aggressive trade policy, as the specter of a full-blown trade war looms over the markets.