Mon Feb 03 17:10:00 IST 2025: ## Trump’s New Tariffs Trigger Global Stock Market Plunge
**London/New York** – Global markets experienced a sharp downturn on Monday following President Trump’s announcement of new tariffs on imports from Canada, Mexico, and China. The move, described by analysts as “Trade War 2.0,” sparked fears of a significant hit to global economic growth.
Asian markets bore the brunt of the initial impact, with Japan’s Nikkei plummeting 2.7% and South Korea’s KOSPI falling 2.5%. Hong Kong’s Hang Seng saw only minor changes, while Shanghai’s market was closed for a holiday.
The negative trend extended to Europe, where the Stoxx Europe 600 index dropped 1.4%. Germany’s DAX and France’s CAC both fell 1.9%, and London’s FTSE 100 declined by 1.3%. US stock futures also pointed to significant losses at the start of the trading day.
Economists expressed concern about the inflationary effects of the tariffs and their potential to weaken growth. Mohit Kumar of Jefferies stated that “Tariffs and counter-tariffs will be inflationary and lead to weaker growth prospects, both of which are negative for equities.”
The US dollar, meanwhile, reached a record high against the Chinese yuan, a development described by Chris Beauchamp of IG as the dollar being “the only winner” for the moment.
Trump’s tariffs, a 25% duty on all Mexican imports and most Canadian goods, along with an additional 10% on Chinese goods, are ostensibly aimed at curbing migrant flow and fentanyl trafficking into the US. These tariffs are scheduled to take effect Tuesday.
Canada and Mexico have already announced retaliatory tariffs, and China has indicated its intention to challenge the move through the World Trade Organization. The escalating trade tensions have left investors deeply apprehensive about the future economic outlook.
First Piper 