Share prices fell on Friday in Asia and Europe for a second consecutive day, with futures market trading indicating that U.S. share prices might continue to decline as worries persist about the economic impact of President Trump’s tariffs. In Japan, the Nikkei 225 Index fell 2.8 percent, matching a drop from the previous day after President Trump announced additional tariffs on goods from Japan. South Korea also saw a decline in the Kospi Index of 0.9 percent after a similar drop the day before, following a 26 percent tariff on imports from President Trump.
In Europe, markets mostly opened down by about 1 percent, with bank stocks among the hardest hit, reflecting concerns over slowing economic growth due to the tariffs imposed by President Trump. The tariffs set at 20 percent on goods from the European Union and 10 percent on imports from Britain have contributed to the downward trend in share prices worldwide. American share prices have been underperforming other markets since President Trump’s inauguration, and this trend was expected to continue on Friday with futures on the S&P 500 showing a decrease of less than 0.5 percent.
The S&P 500 experienced its worst single-day loss since 2020 on Thursday, dropping 4.8 percent as investors reacted to President Trump’s announcement of tariffs and a minimum tax on nearly all imports. This news caused market volatility as investors sold off stocks and sought safety in government bonds. Stocks in Southeast Asia were particularly affected, as countries that reprocess Chinese components for the U.S. market faced heavy tariffs from President Trump. Vietnam, in particular, saw its stock market decline on Friday following the announcement of 46 percent tariffs on goods from the country.
Many of Vietnam’s exports to the United States are made with components imported from China, leading to concerns about the impact of these tariffs on the country’s economy. Meanwhile, stock markets in mainland China, Hong Kong, and Taiwan were closed on Friday for a local holiday, but the effects of President Trump’s tariffs were felt across Asian and European markets. The continued uncertainty and volatility in global markets reflect the ongoing concerns about the economic consequences of President Trump’s trade policies and their impact on businesses and consumers worldwide.
Investors will be closely monitoring developments in the coming days to assess the full impact of these tariffs on global trade and economic growth. The uncertainty surrounding President Trump’s trade policies has led to increased market volatility and concerns about a potential economic slowdown. It remains to be seen how countries will respond to these tariffs and whether negotiations can alleviate some of the tensions in global trade. In the meantime, investors are likely to remain cautious as they navigate the uncertain terrain of international trade relations in the current economic environment.
