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Tom Espiner
BBC Business Reporter
Global actions drowned, day after President Donald Trump has announced the broad new tariffs, which are projected, prices and weighing rising in the US and abroad.
The S&P 500, which tracks the 500 largest American firms, plunged at 4.8% – its worst day because Covid broke the economy in 2020. Earlier on the day of the financial markets fell from Asia to Europe.
Nike, Apple and Target were one of the big names of consumers of the worst hit, and they all plunged by more than 9%.
At the White House, Trump told reporters that the US economy would be a “boom” when it made a decision to impose a minimum of 10% of the import tariff, which, he said, will increase federal income and bring the American production house.
The President of the Republicans plans to apply products from dozens of other countries with much larger levies, including trading partners such as China and the European Union.
China, which is facing a total tariff by 54%, and the EU, which is facing 20%duties, both promised revenge on Thursday.
Tariffs are taxes on goods imported from other countries, and the Trump’s plan, which he announced on Wednesday, comes to such duties to some of the highest levels over 100 years.
The World Trade Organization said it was “deeply concerned” by estimating trade, this year could be reduced by 1%.
Traders are also concerned about the global economic impact of Trump’s tariffs, which, fearing, can start inflation and stall growth.
On Thursday, the S&P 500 shed approximately 2 tn, continuing the sale that has been going on since mid -February amid the fears of trade.
Dow Jones closed approximately 4% below, while NASDAQ collapsed by approximately 6%.
Earlier, FTSE 100 shares in the UK decreased by 1.5%, while other European markets also fell, which was repeated in Asia.
On Thursday, the White House doubled on the high share policy aimed at abolishing decades of liberalization under the leadership of the United States, which formed a global trade order.
“I think it goes very well,” he said. “It was such an operation as when a patient works and it’s a big thing. I said it was exactly like that.”
He added: “Markets are going to boom.
Trump also said he was ready to negotiate with trades on tariffs: “If someone said we will give you what is phenomenal.”
On Thursday, Canadian Prime Minister Mark Karnya said the country will avenge 25% by cars imported from the United States.
Last month, Trump introduced 25% tariffs in Canada and Mexico, although he did not announce new duties against North American trading partners on Wednesday.
Now the firms are facing the choice of ingestion of the tariff value, working with partners to share this weight – or pass it on to consumers, and risking reducing sales.
This can have a great influence as US consumers costs are approximately 10% to 15% of the world economy, some estimates.
While the stock fallen on Thursday, the price of gold, which is considered a safer acquisition during turbulence, touched upon a record high level of $ 3167.57 per ounce on Thursday before returning.
The dollar also weakened many other currencies.
According to the analysts of the main asset management, tariffs in Europe can lead to growth almost at the percentage point if the unit is avenged.
In the US, the recession probably has come true without other changes, such as large tax reductions, which Trump also promised, warned Sam Shah, the main global strategist of the firm.
She said Trump’s goals were a long process, “if it would happen at all.”
“At the same time, the steep tariffs for imports will probably be immediate through the economy with limited short-term benefit,” she said.
On Thursday, Stellantis, making a jeep, fiat and other brands, said she temporarily stopped production at the Talutsa, Mexico and Windsori plant, Canada.
It states that this step, a response to Trump’s 25% tax, will also lead to temporary layoffs of 900 people to five factories in the United States supplying these factories.
In the Nike stock market, which makes most of its sportswear in Asia, it was one of the heaviest hits on S&P, shares decreased by 14%.
Apple stocks, which are heavily relying on China and Taiwan, scored 9%.
Other retailers have also fallen, and the target decrease by about 10%.
Motorcycles manufacturer Harley-Davidson-Yaki was driven by the EU retaliation during the first term of Trump as president and this time was named a potential goal for revenge-10%.
In Europe, the Adidas sportswear fell by more than 10%, while the Puma competitor’s stock collapsed by more than 9%because the key countries where their goods are produced were killed by steep levies.
Among the firms of luxury goods, the jewelry manufacturer Pandora decreased by more than 10%, and LVMH (Louis Vuitton Moet Hennessy) decreased by more than 3% after tariffs were introduced into the European Union and Switzerland.
“You see that retailers are now being destroyed because the tariffs are extending to countries we have not expected,” said Jay Woods, the main global strategy in the Freedom Capital markets, adding that there is more turbulence.
