U.S. and global stock markets plunge after new Trump tariffs

The American and global stock markets have plunged on Thursday, following Donald Trump’s announcement of a new 10 per cent tariff on all imports to the United States. 

The double-digit tariff hikes sent shivers across world markets with economists warning about the risk of recession. 

In the U.S., the S&P 500 fell 3 per cent at the market opening. Dow Jones Industrial Average futures lost 3.7 per cent and The Nasdaq slid 4.5 per cent. 

Trump’s announcement also hurt oil prices, which tumbled more than 4 per cent. The U.S. dollar hit its lowest level against the Japanese yen since early October. 

On the Old Continent, European stocks closed 2.7 per cent lower. Danish shipping giant Maersk, widely viewed as a barometer for world trade, was 9.5 per cent lower. 

Trump’s aggressive move brings the world one step closer to what experts say could become a global trade war. 

Several world leaders, including in the European Union, Canada and China, have already announced their intention to retaliate against the U.S. with countermeasures.