Tom Espinner
BBC Business Reporter
See: “The country will be booming after tariffs,” President Trump says
Global stocks sank a day after President Donald Trump announced he had raised prices and wiped out new tariffs that were projected to consider growth in the US and overseas.
The Asia-Pacific stock market fell on the second day, and was hot shortly after the US S&P 500.
Nike, Apple and Target are one of the biggest consumer names for the worst hits, and they all sunk over 9%.
At the White House, Trump told reporters that the US economy is “a boom” thanks to a minimum 10% tariff that is planned to slap global imports in the hopes of boosting federal revenue and bringing American manufacturing home.
The Republican president is set to strike the products of dozens of other countries with far higher taxes, including trading partners such as China and the European Union.
China, which faces 54% tariffs and EU, which faces 20% duties, both vowed to retaliate on Thursday.
French President Emmanuel Macron has called on European companies to suspend planned investments in the United States.
Tariffs are taxes on goods imported from other countries, and Trump’s plans he announced Wednesday will raise such obligations to some of the highest levels for over 100 years.
“He turned the system upside down”: Americans respond to Trump’s tariffs
The World Trade Organization says it is “deeply interested” and estimates that trade volume could drop by 1% this year.
Traders have expressed concern that tariffs could blow out inflation and stall growth.
In Friday morning trading, the Japanese benchmark Nikkei 225 index fell 2.7%, while the Australian ASX 200 fell 1.6%. Korean Cospi was flat to slightly lower.
Markets in mainland China and Hong Kong are closed for Qingming Festival.
On Thursday, the S&P 500, tracking the 500 largest American companies, plummeted 4.8%, with value flowing around $200 million.
The Dow Jones closed about 4% lower, while the Nasdaq fell about 6%. The US has been selling since mid-February amid fears of a trade war.
Previously, the UK’s FTSE 100 share index fell by 1.5%, while other European markets also fell, reflecting a decline from Japan to Hong Kong.
At the White House on Thursday, Trump doubled the high-stakes gambit, which aimed to reverse decades of US-led liberalization that would shape the global trade order.
“I think it’s going very well,” he said. “It’s the kind of surgery that a patient has had surgery, and that’s a big deal. I said this is exactly what it is.”
He added: “The market is booming. Inventory is booming.
A White House aide who argued that the new tariffs were not a negotiation tactic, signaled that he might be open to dealing with his trading partners, “if someone says they’ll give you something so amazing.”
On Thursday, Canadian Prime Minister Mark Carney said the country would retaliate with 25% collection of vehicles imported from the US.
Trump imposed 25% tariffs on Canada and Mexico last month, but did not announce any new obligations on North American trading partners on Wednesday.
Nowadays, businesses face the choice to engulf tariff costs, work with partners to share the burden, hand it over to consumers, and risk drops in sales.
Some estimates show that U.S. consumer spending can have a major impact, as it ranges from about 10% to 15% of the global economy.
Stocks fell on Thursday, but the price of gold, considered a safer asset in the event of turbulence, fell after touching on a record high of $3,167.57 per ounce on Thursday.
The dollar has also weakened against many other currencies.
Watch: Tracking President Trump’s love for the charts over the years
In Europe, tariffs could reduce growth rates by nearly percentage points, and could potentially hit even more if BLOC retaliates, according to analysts at Principal Asset Management.
In the US, the recession is likely to materialize without other changes, including the massive tax cuts that Trump has promised, warning Sheema Shah, the company’s top global strategist.
She said Trump’s goal of boosting manufacturing would be a year-long process “even if it happened at all.”
“In the meantime, sudden tariffs on imports are likely to be an immediate resistance to the economy due to limited short-term profits,” she said.
Watch: 3 Things You Need to Know About Trump’s Tariff Announcement
On Thursday, Stellantis, which manufactures Jeep, Fiat and other brands, said it had temporarily stopped production at its plants in Toruca, Mexico and Windsor, Canada.
The move, which is a response to a 25% tax on Trump’s automobile imports, will lead to temporary layoffs of 900 people on five US plants that supply these plants.
On the stock market, Nike, which makes many of Asian sportswear, was hit hardest with the S&P, with stocks down 14%.
Apple’s stocks, which are heavily dependent on China and Taiwan, fell 9%.
Other retailers also fell, with the target dropping by about 10%.
Motorcycle maker Harley Davidson was subject to retaliation tariffs by the EU during Trump’s first term as President Trump – fell 10%.
In Europe, shares in sportswear company Adidas fell more than 10%, while shares in rival Puma fell more than 9%.
Among the luxury companies, jewelry maker Pandora fell more than 10%, while LVMH (Louis Vuitton Moet Hennessy) fell more than 3% after tariffs were imposed on the European Union and Switzerland.
“We are pleased to announce that we are committed to providing a comprehensive range of services,” said Jay Woods, Chief Global Strategy at Freedom Capital Markets.
