How Global Markets Reacted to Trump’s Tariff Announcement? Nikkei Falls 3.9%, Apple Shares Drop 7%

On April 2, 2025, U.S. President Donald Trump announced new reciprocal tariffs, aiming to match the duties imposed on U.S. goods by other nations. 

Tariff Rates for Different Countries 

Speaking from the White House Rose Garden, Trump declared a minimum baseline tariff of 10%, with higher rates for specific countries: 34% for China, 24% for Japan, and 20% for the European Union. 

India, which imposes 52% tariffs on U.S. imports, will now face a 26% tariff in return. Additionally, Trump introduced a 25% tariff on automobile imports.

Market Reaction to the Tariff Rates

S&P 500 futures dropped 3.3%, Nasdaq futures fell 4%, and $760 billion was wiped off the market value of major U.S. tech companies. 

Apple, which heavily relies on Chinese manufacturing, saw its shares tumble nearly 7%. Asian markets reacted sharply, with Japan’s Nikkei hitting an eight-month low, falling 3.9%, while 

South Korea’s Kospi slipped 2%. The Van Eck Vietnam ETF dropped over 8%, and Australian shares fell 2%.

Commodities also saw an impact. Gold surged to a record high above $3,160 per ounce, as investors sought safe-haven assets. Meanwhile, Brent crude oil fell 3% to $72.56 per barrel, signaling concerns over global economic growth.

These new tariffs are expected to impact the Indian stock. As of 7:41 AM, Gift Nifty was at 23,165, down by 0.27%.

Conclusion

Trump’s tariff policy has impacted financial markets. The U.S. aims to counter foreign trade barriers. Investors may now brace for further volatility as countries react to the new measures.

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