Global Markets Rattle as U.S. Tariffs Shake Trading Partners

Global shares took a hit on Friday as the U.S. announced significant tariffs on multiple trading partners. Investors are now on edge, anticipating U.S. jobs data that could sway the Federal Reserve's decision on a rate cut next month. The Stoxx 600 index dropped 1% in initial trading, heading towards its largest weekly decline since April.

U.S. market futures, including those for NASDAQ and S&P 500, fell by roughly 1% following President Trump's executive order implementing tariffs ranging from 10% to 41% on imports. This action elevated tariffs to 25% for India's exports, 20% for Taiwan's, and made a marked increase in Canadian goods tariffs to 35%.

The markets were less volatile compared to past declines, says Wei Yao of Société Générale, as investors have become more accustomed to the current tariff landscape. Meanwhile, the yen and the Canadian dollar showed mixed responses to these developments, while U.S. Treasury yields and oil prices wavered.

(With inputs from agencies.)