Stock indices across the U.S., Japan, and Europe declined amid escalating fears of renewed trade tariffs under a potential Trump administration. The S&P 500 dropped 2.1%, while the Nikkei 225 fell 3.4%, reflecting broad-based investor anxiety over shifting trade policy.
- S&P 500 dropped 2.1% to 4,785.43
- Nikkei 225 fell 3.4% to 37,418.85
- DXY rose 0.8% to 105.22
- USD/JPY jumped to 152.70
- Copper futures declined 1.8%
- Trump proposes 60% tariffs on Chinese imports
Global equity markets plunged on Monday as former President Donald Trump’s renewed rhetoric on imposing sweeping tariffs reignited concerns over a potential trade war. The S&P 500 fell 2.1% to close at 4,785.43, its steepest daily drop in six weeks, while the Dow Jones Industrial Average lost 1.9% to 37,812.39. In Tokyo, the Nikkei 225 tumbled 3.4% to 37,418.85, dragged down by exporters and tech shares. The broader decline was fueled by the expectation that new tariffs could target key sectors including technology, consumer goods, and industrial manufacturing. The sell-off extended to currency markets, with the U.S. dollar strengthening against major peers. The DXY index rose 0.8% to 105.22, driven by safe-haven demand. The USD/JPY pair surged to 152.70, its highest level since late 2023, as investors positioned for potential policy shifts that could affect capital flows and trade balances. Commodities also reacted, with copper futures dropping 1.8% amid reduced outlook for industrial demand in global supply chains. Investors are particularly focused on Trump’s stated intention to impose 60% tariffs on Chinese imports and 10% on all other imports. Such measures would significantly alter cost structures for multinational corporations, especially in the technology and automotive sectors. Companies like Apple, Intel, and Toyota have already begun assessing supply chain adjustments in anticipation of higher import costs, leading to downward revisions in earnings expectations for the second quarter of 2026.