U.S. President Donald Trump has announced that he will declare new tariffs on Wednesday, causing the stock market to decline in anticipation of his “Liberation Day.”
The S&P 500 fell by 0.5%, while the Nasdaq dropped 1.4%. Clearly, investors are hesitant to take risks ahead of the tariff announcement. The price of gold has surged, reaching $3,150 per ounce. Deutsche Welle unveiled a report on this regard.
Experts attribute the market uncertainty to increasing trade tensions. Japan’s Nikkei 225 dropped by 4%, South Korea’s KOSPI fell by 3%, and France’s CAC 40 dropped by 1.5%.
What to Expect on Wednesday?
President Trump has dubbed April 2 as “Liberation Day,” signaling the announcement of a series of new tariffs. However, the specifics of what will happen remain uncertain. Some experts believe he might impose “reciprocal” tariffs, which could affect every country.
In a recent interview, Trump did not rule out the possibility of a global economic downturn, which further influenced Monday’s stock market performance.
Trump’s planned export tariffs could be more severe than before. He previously imposed a 20% tariff on China and has threatened a 25% tariff on Canada and Mexico. He is also considering tariffs on Europe, India, and Japan, causing concern among German wine exporters.