Global Markets Rattle Amid New U.S. Tariff Announcements

Global markets faced a shake-up after President Donald Trump announced sweeping new tariffs on Thursday, impacting stocks across Asia and Europe. The tariffs, which include a 100% duty on branded drugs and a 25% tariff on heavy-duty trucks, are scheduled to take effect on October 1, leaving markets in disarray.

The move by the Trump administration introduces significant uncertainty over whether these levies will be cumulative with national tariffs or if trade partners like the European Union might receive exemptions. Trade agreements with Japan, the UK, and the EU already limit tariffs on certain goods like autos and semiconductors.

Pharmaceutical companies are reacting by boosting U.S. production to mitigate the 100% tariff on branded drugs. Meanwhile, the tariffs could benefit domestic heavy-duty truck manufacturers like Peterbilt and Freightliner. Investors are closely watching the Federal Reserve's next moves, especially as inflation concerns rise with potential interest rate cuts.

(With inputs from agencies.)