Global Markets Slide as Trump Signals New Tariff Measures

Global equity markets experienced a broad-based sell-off on January 19, 2026, after former U.S. President Donald Trump announced plans to impose sweeping new tariffs on imports from multiple countries. The move triggered immediate reactions across asset classes, with the S&P 500 falling 1.8%, the Dow Jones Industrial Average dropping 1.5%, and the Nasdaq Composite declining 2.3% by midday. Market participants cited the potential for disrupted supply chains and higher inflation as key concerns. Investors reacted with caution as the threat of protectionist measures resurfaces ahead of the 2028 U.S. presidential election. The technology sector, represented by the NDX, was among the hardest hit, with a 2.7% decline driven by fears of higher component costs and reduced global demand. Consumer discretionary stocks also weakened, down 2.1%, amid expectations of reduced import volumes and margin pressure. The foreign exchange market reflected heightened risk aversion, with the USDJPY pair rising 0.7% to 152.30, indicating a flight to the U.S. dollar. The EURUSD declined 0.6% to 1.0820 as European markets followed the global downturn. In commodities, gold (GLD) rose 1.4% as investors sought safe-haven assets, while crude oil (XLE) edged up 0.9% on concerns over potential trade-related supply constraints. The rally in gold and dollar strength underscored growing anxiety around geopolitical and trade risks. Energy equities, tracked by XLE, ended the session with a modest gain, suggesting that investors may be pricing in potential energy supply disruptions rather than broader macroeconomic fallout. The broader market reaction highlighted the sensitivity of capital flows to shifts in U.S. trade policy, even in the absence of formal legislation.