The global markets were shaken by Trump’s new customs tariffs. Escapes from the stock markets accelerated. Technology shares plunged, the dollar weakened. Meanwhile, gold continued its record streak. US President Donald Trump, by announcing customs tariffs higher than expectations yesterday, disrupted trade and supply chains. The decision of the US to impose taxes worldwide increased investor anxiety. Markets sharply declined, with investors seeking refuge in bonds, gold, and the yen.

TRUMP TO IMPOSE ADDITIONAL TAXES ON ALL COUNTRIES Trump announced that they would start implementing at least a 10% mutual customs duty on all countries, including Turkey. The US will levy a 34% tariff on China, 20% on the EU, 24% on Japan, and impose a 25% tax on cars produced in foreign countries. The European Union and China stated that they would retaliate against the US’s additional taxes.

TECH SHARES TUMBLED Technology sector shares sharply declined after customs tariffs over 30% on production centers in China and Taiwan, and increasing taxes on products imported from China to 54%. Apple shares dropped by 6%, Nvidia by 4%, and Tesla by approximately 4.5%. Alphabet, Amazon, and Meta shares also experienced a decline ranging from 2.5% to 5%. The total market value of the major companies of the technology sector, known as the Fabulous Seven, dropped by 760 billion dollars. The Nasdaq index lost over 3% in value. Almost every sector, from suppliers, bankers, insurers to exporters, will be affected by Trump’s customs tariffs.

INVESTORS FLEEING FROM RISK Following Trump’s announcement, there was a prominent trend of investors fleeing from risk, leading to increased demand for safe-haven assets. Sharp declines were observed in the stock markets. Nasdaq futures dropped by 3.3%. S&P 500 futures by 2.7%, FTSE futures by 1.6 %, and European stock futures also fell by approximately 2%.

In Japan, the Nikkei 225 index declined by 3%, while in South Korea, the Kospi index fell by 0.8%, the Shanghai Composite index in China by 0.4%, and the Hang Seng index in Hong Kong by 1.8%.

DOLLAR WEAKENS, GOLD HITS RECORD High customs tariffs weakened the dollar and strengthened the euro. Assets recognized as safe havens like the Japanese yen and Swiss franc saw increased demand. The dollar index dropped by 0.14% to the 103 level. The dollar traded at 147.38 against the yen, marking a 1.25% decline. With increased demand for bonds from investors, the US 10-year bond yield fell by 13 basis points to 4.07%. A 2% decline was recorded in oil prices. Meanwhile, an ounce of gold reached a record level of $3,168. Therefore, the rise in the yellow metal surpassed 20% since the beginning of the year.