Investors have become impoverished by $2.5 trillion due to Trump's tariffs. What the media is writing
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- Investors have become impoverished by $2.5 trillion due to Trump's tariffs. What the media is writing
There was a major sell-off in the stock markets after US President Donald Trump announced the introduction of widespread tariffs. The losses of American investors in one day amounted to $2.5 trillion, and falls also occurred on stock exchanges in Europe and Asia. The collapse also occurred in the oil market. What the world media write about the consequences of tariffs is in the Izvestia digest.
Bloomberg: S&P 500 is experiencing its worst drop since COVID-19
The main US stock index S&P 500 showed the biggest drop since June 2020. It fell by 4.8%, and American stocks lost $2.5 trillion in total. Trump's tariffs have triggered fears of a recession and forced investors to switch to safe assets such as bonds and the Japanese yen.
Bloomberg
The Nasdaq 100 index fell 5.4% — the worst day since September 2022 — due to Apple Inc.'s 9% loss, while Nvidia Corp. and Tesla Inc. They also fell. Everything from sneaker manufacturers to clothing dropped after Trump imposed new tariffs on crucial manufacturing countries, including Vietnam and Indonesia. Nike Inc. fell 14%, Lululemon Athletica Inc., Abercrombie & Fitch Co. and Gap Inc. also declined.
Although the sell-off was widespread, investors were primarily withdrawing risky stocks from fast-growing companies that had driven the market higher over the past two years. The continuation of the sell-off on April 4, when the government's March employment report is released, threatens to extend the S&P 500's losses to six of the last seven weeks.
The New York Times: Asian and European markets fall for two days in a row
Stock prices in Asia and Europe fell for the second day in a row, while concerns remain about the economic consequences of Trump's imposition of sweeping tariffs. Japan's Nikkei 225 index fell 2.8% as the country faces 24% tariffs on its goods. In South Korea, the Kospi index fell 0.9% on Friday after falling by about the same amount a day earlier. Duties of 26% have been set for this country.
The New York Times
Markets in Europe mostly opened lower, by about 1% overall. Bank stocks suffered the most, reflecting fears of a slowdown in economic growth due to tariffs set at 20% on goods from the European Union and 10% on imports from the UK.
Stocks in Southeast Asia were slammed after Trump's tariffs hit countries that process many Chinese components for the U.S. market hard, bypassing U.S. tariffs so far on goods coming directly from China. The stock market in Vietnam fell again on Friday after falling the previous day. The stock markets of mainland China, Hong Kong and Taiwan are closed on April 4 due to the holidays.
Reuters: Oil industry faces worst week in recent months
Trump's new tariffs could lead to the worst week for oil prices in recent months, as investors raised concerns that a global trade war would hurt oil demand. Brent futures fell to $68.86 per barrel, while WTI crude futures fell to $65.66. Brent is heading for its biggest weekly drop since October 14, and WTI since January 21.
Reuters
The decision of the Organization of the Petroleum Exporting Countries and its Allies (OPEC+) worsened the pessimistic mood about the implementation of its plan to increase oil production. Now the organization intends to return 411 thousand barrels per day to the market in May, compared with the initially planned 135 thousand barrels.
Imports of oil, gas, and petroleum products have been exempt from Trump's new massive tariffs, but the remaining tariffs could trigger a spike in inflation, slow economic growth, and escalate trade disputes, putting pressure on oil prices.
Associated Press: Trump reacted to falling markets
Trump gave a positive assessment of the current situation after the US stock market plummeted on April 3 due to the duties he imposed. The President said that this was to be expected. He compared the United States to a sick patient who needs surgery."
Associated Press
I think everything is going very well. We are dealing with surgery, as when a patient undergoes surgery, and this is a big event. I told you it would be like this," he said, obviously referring to the sale. He talked about the trillions of dollars of investments that "come to our country" from companies that want to manufacture their products in the United States to avoid duties.
Speaking to reporters aboard Air Force One, Trump said he was open to using tariffs in negotiations with other countries and that it would depend on whether they could offer something "phenomenal" in return. He claims that other countries have been exploiting the United States for a long time, and he wants it to stop.
Politico: Trump's tariffs jeopardize weapons production
Trump's tariff policy could disrupt global supply chains on which the production of American weapons depends. This will make it more difficult for the United States to counter China. In particular, the tariffs will affect joint ventures for the construction of submarines with the UK and Australia. According to analysts, America's approach may lead to skeptical partners looking for other ways to cooperate.
Politico
The Pentagon has spent decades building, financing, and nurturing a global network of suppliers and companies that are now facing tariffs. Without exceptions for defense, the administration could have nullified much of this work by delaying the production of American weapons for the country and other buyers. "There will be a shortage of supplies, a retaliatory strike, and our allies and other partners will retaliate," said Bill Greenwalt, a former Pentagon procurement official. "Some potentially vital supplies will either cost much more than they cost, or they simply won't be there."
The programs at risk include the F-35 fighter jet, which is being flown by 20 countries as part of a partnership designed to provide participating countries with production facilities, as well as important missile and air defense projects with Norway and Israel. These and other projects are of key importance for defense in Europe and the Indo-Pacific region.
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