Global Market Turmoil as Trump Unleashes Tariff Storm
Global stocks and the U.S. dollar plummeted following President Trump's trade announcement to impose 50% tariffs on EU imports. The markets responded negatively, with equity indexes dropping sharply. Treasury yields saw fluctuations as investors sought safe havens amid rising economic concerns and escalating fiscal deficit worries.
Global markets experienced significant volatility as U.S. President Donald Trump announced a hefty 50% tariff on European Union imports, effective June 1. The surprise move sent shockwaves through global equities, causing the dollar to slide as investors reeled from the potential economic implications.
U.S. futures and major European indices, including Germany's DAX, Britain's FTSE 100, and the Stoxx 600, witnessed substantial declines. Meanwhile, government bonds rallied in both the U.S. and Europe as investors sought refuge amid escalating concerns over Trump's fiscal policies, including contentious tax cuts.
Adding to market anxiety, Trump's tariff announcement included a 25% levy on Apple products not produced within the U.S., affecting the tech giant's stock. The rollercoaster week for investors was marked by Moody's U.S. credit downgrade and a narrow Congressional approval of Trump's tax cuts, which are projected to stretch national debt by $4 trillion.
(With inputs from agencies.)
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