A significant decline was witnessed in the Global stock markets soon after U.S. President Donald Trump approved new tariffs on China, Mexico and Canada. It ignited concerns of an impending trade war.
However, on Monday a partial recovery was seen as the news broke that Trump had decided to postpone new tariffs on Mexican goods for a month, raising hopes for a potential resolution.
Over the weekend, Trump unsettled the investors by reaffirming his commitment to the tariffs. It was known as the ‘Trump Tariff Tantrum’ in the markets on Monday.
Wall Street has opened with a sharp downturn with the S&P 500 plummeting nearly 2%. However, it began to bounce back after the US and Mexico announced a temporary halt on duties to facilitate negotiations.
By mid-morning, the tech-heavy Nasdaw was down 1%, while the S&P 500 decreased by 0.7%. The FTSE 100 index in London also witnessed a drop of 1.4% from last Friday’s peak before recovering a little bit to show a decline of 1.1%.
DAX index of Germany fell by 1.5% and France’s CAC 40 dropped by 12%. Spain’s IBEX also lost 1.2% while the FTSE MIB of Italy was down 0.7%.
The American tech giant Nvidia faced a historic drop in its stock price last week because of the competition from Chinese AI company DeekSeek. It encountered the largest loss, falling over 5%.
Trump announced a 25% tariff on goods from Mexico and Canada together with a 10% tariff on Chinese imports. In London, stocks across various sectors fell including Scottish Mortgage Investment Trust, miner Antofagasta as well as JD Sports Fashion.
The pound further slipped against a stronger US dollar, down to $1.23, however, it gained 0.5% against the euro which faced downward pressure trading at €1.20.
Business Journalist
Subscribe to our newsletter and get top Tech, Gaming & Streaming latest news, updates and amazing offers delivered directly in your inbox.
