Global markets reel as tariffs begin

NEW YORK: Markets around the world shuddered on Wednesday after President Donald Trump announced across-the-board 10% tariffs on all US trading partners except Canada and Mexico, as well as even higher tariffs on dozens of America’s other main trading partners.

- JOE RENNISON DANIELLLE KAYE RIVER AKIRA DAVIS

Futures on the S&P 500, which allow investors to trade the index outside normal trading hours, slumped over 3%. Asian markets fell sharply, with benchmark indexes dropping more than 3% in Japan, and nearly 2% in Hong Kong and South Korea.

The slide came after Trump, speaking at a ceremony at the White House on Wednesday, announced a new 10% baseline tariff on all imports, as well as country-specific tariffs on goods from a host of other countries. Those included a 34% tax on Chinese imports, on top of 20% in tariffs he recently put on China, and 20% on goods coming from the European Union and 24% on Japanese products. The US’s average tariff on nonagricultural goods is approximately 2.4%, making it among the lowest in the world.

The uncertainty around the tariff levels has left investors unable to assess the potential ramifications for consumer, businesses and the broader economy.