Trump's Tariffs Send Markets Into Decline, Gold Prices Hit Record High

Global financial markets were rattled on Wednesday after US President Donald Trump unveiled new tariffs, primarily targeting China and the European Union, raising concerns about the impact on the global economy. Although the announcement came after Wall Street's trading session had ended, its effects were quickly felt across markets, driving stock futures and bond yields lower, while gold prices surged to a record high.

As the evening progressed, US futures experienced a sharp decline. The Dow Jones dropped by 2.4 percent, the Nasdaq plummeted by 4.2 percent, and the S P 500 futures fell by 3.5 percent. Wall Street had already been under pressure from Trump's previous trade-related actions. Some analysts suggested that the tariffs might just be a starting point for negotiations, which could lead to lower rates in the future. However, for now, the markets response was largely negative, with traders reacting hastily.

Technology stocks, particularly those reliant on international supply chains, were hit hard. Apple saw a 7.4 percent drop in after-hours trading, Nvidia fell by 5.2 percent, and TSMC declined by 5.9 percent. The clothing industry also faced significant losses, particularly brands with manufacturing ties to China and Vietnam, where new duties would be imposed. Gap, Ralph Lauren, and Nike saw their stock prices fall sharply by 8.5 percent, 7.3 percent, and 7.1 percent, respectively.

During this turmoil, investors sought refuge in gold, which surged past its previous record, trading at around 3,160 an ounce. Gold has jumped nearly 20 percent since the start of 2025 as trade uncertainties continue to grow. The bond market also acted as a haven, with the yield on the US ten-year Treasury bond easing to 4.10 percent following Trump's announcement, as investors sought more secure assets.

The US dollar also weakened significantly, falling over one percent against the euro shortly after Trumps speech. The euro, which was worth around 1.04 dollars on Trump's inauguration day, had risen to 1.09 dollars by the evening. Even Bitcoin, the most popular cryptocurrency, saw a decline of more than three percent in response to the tariffs.