LONDON: Global stock markets tumbled Friday after US President Donald Trump announced sweeping tariffs on dozens of trading partners and disappointing US jobs data further rattled investor sentiment.
On Wall Street, the Dow Jones Industrial Average fell more than 1.2% in early trading, while Paris and Frankfurt slid over 2%. The US dollar also lost earlier gains against major currencies.
Trump’s “Liberation Day” tariffs, first announced in April and delayed several times, are now set to take effect August 7. The latest round targets around 70 economies, with rates ranging from 10% to 41%, including a 35% tariff on Canada and a 39% tariff on Switzerland. Some US allies — including the UK, EU, Japan, and South Korea — have already reached exemption deals, while talks with China continue.
Adding to market jitters, the US Labor Department reported the economy added only 73,000 jobs in July, with downward revisions for May and June. Analysts said the payrolls report overshadowed even the tariff news, fueling fears of a slowing US economy.
Pharmaceutical stocks in Europe also slumped after Trump threatened to punish companies that failed to lower US drug prices.
The trade uncertainty has clouded otherwise strong tech earnings. Apple reported double-digit revenue growth, Amazon posted a 35% profit jump, and Google, Microsoft, and Meta all delivered strong results, though Amazon’s outlook disappointed.
Comment