US Equities and Cryptocurrencies Decline Following Trump’s Global Tariff Announcement
President Donald Trump announced new global tariffs, imposing a 10% levy on nearly all imports and higher rates on around 60 countries with significant trade deficits with the US. Key tariffs include:
- China: 34%
- European Union: 20%
- Vietnam: 46%
- Taiwan: 32%
Trump stated that foreign nations will need to pay for access to the US market. He cited “currency manipulation and trade barriers” as reasons for targeting specific countries. China allegedly imposes a total of 67% on US imports.
A 25% tariff on car imports will take effect tonight, with additional levies on auto parts planned for May. Trump mentioned this would boost domestic manufacturing and job creation.
Critics argue these tariffs may lead to higher prices, reduced consumer spending, and slower business expansion. Goldman Sachs increased recession odds from 20% to 35% following the announcement.
On the trading day, the S&P 500 rose by 0.7% and the Nasdaq Composite by 0.9%, but both indices fell by almost 2% in after-hours trading. Bitcoin and ether dropped approximately 2.4% immediately after the tariffs were announced. Markets had anticipated tariffs between 15% and 20%.