Markets Plunge as Trump’s New Tariffs Rattle Global Sentiment

Donald Trump strikes again—this time with a fresh round of reciprocal tariffs, and the market reaction is immediate and severe.

Let’s begin with the futures: global indices are in full retreat. Futures are plunging across the board, with widespread red dominating the screens. What was shaping up to be a potentially calm session has been turned upside down by the escalation in trade tensions.

On the currency front, we’re seeing a sharp sell-off in the American dollar. The dollar is now shaping up to be the worst-performing currency of 2025 so far. In contrast, European currencies are showing resilience, climbing higher in response. The Japanese yen is holding steady, with modest gains, benefiting from some safe-haven flows.

The commodities market is also feeling the shock. Gold initially spiked, following the classic risk-off script, but is now pulling back sharply as volatility picks up. Other precious metals are under pressure as well, with traders re-evaluating their positions in response to the sudden tariff developments.

On the macro calendar, we’ve already seen inflation data from Switzerland, which came in slightly below expectations, yet the Swiss franc is gaining, making it one of today’s strongest European currencies. The main data releases still to come are US unemployment claims and ISM Services PMI, with the latter expected at 53.

In short, Trump’s tariffs are now the key market driver, disrupting technical setups and sending shockwaves through all major asset classes. Expect volatility to remain elevated as traders assess the broader economic fallout of this aggressive trade stance.

Source: https://www.axiory.com/analytics/market-news/markets-plunge-as-trump-s-new-tariffs-rattle-globa