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Global Markets Drop After Trump Moves to Raise Tariffs on Scores of Nations

Dow Jones Newswires

Aug 01, 2025 16:15:00

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By Dow Jones Newswires Staff

Global stock markets were firmly in the red after President Trump on Thursday said the U.S. would raise tariffs on multiple trading partners on Aug. 7. Those worst hit include Switzerland with a 39% tariff, Taiwan with a 20% tariff and Canada, which faces a 35% levy for those goods not compliant with the U.S.-Mexico-Canada Agreement. A key focus remains China, as negotiations continue.

The announcement of the sweeping tariffs knocked shares on Wall Street and took the gloss off another strong set of AI-driven tech earnings from Meta and Microsoft. Earnings on Friday pivot to oil majors ExxonMobil and Chevron. On the economic front, nonfarm payrolls figures for July land as does the ISM manufacturing survey, as concerns over growth and inflation linger.

  • U.S. stock futures pointed to a lower open, with those for the S&P 500 down 0.7%, while Dow Jones Industrial Average and Nasdaq futures were down 0.8%, tracking the lower close in Thursday's session.
  • All European stock markets were down, most by well over 1%, while the U.K.'s FTSE 100 lost 0.5%. In a related development, Trump also sent letters to 17 big pharmaceutical companies asking them to lower costs of drugs for U.S. consumers, knocking healthcare sector indexes in Europe. It is a public holiday in Switzerland, but the franc weakened: Swiss exports to the U.S. are dominated by the pharmaceutical sector.
  • Asia-Pacific equity markets fell broadly. Japan's Nikkei 225 index declined 0.7%, Hong Kong's Hang Seng fell 0.8% and China's benchmark Shanghai Composite dropped 0.4%. Taiwan's Taiex closed 0.5% lower while South Korea's Kospi dropped 3.9%, weighed by a tax-increase plan from the new government.
  • The U.S. dollar steadied against a basket of currencies, having risen to a two-month high overnight. The DXY dollar index was last flat at 99.959, having earlier hit 100.145.
  • U.S. nonfarm payrolls data for July will set the tone in the U.S. Treasury market for next week, Danske Bank's Jens Peter Sorensen said. A soft labour market report will add pressure on the Federal Reserve to cut rates in September even though Thursday's PCE inflation was slightly higher than expected. Ahead of that, the two-year Treasury yield was unchanged at 3.950%, while the 10-year Treasury yield was up 2 basis points to 4.381%, according to Tradeweb.
  • In commodities, Brent crude was flat at $71.69 a barrel and WTI down 0.1% at $69.22 a barrel. Oil prices are up significantly on week, with Brent and WTI up 6% and 6.3%, respectively, after President Trump threatened new sanctions or secondary tariffs against importers of Russian oil.

Write to Barcelona Editors at barcelonaeditors@dowjones.com

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