🌐 Market Report.
🤔 There is no doubt about it. Donald Trump was showing off. A couple of weeks ago in this report we commented on Trump’s words during an interview with Fox News, when he was asked if he was concerned about the stock market crashes. He said: China plans its economy for 100 years, and we look at it quarter by quarter.
🔥 Yesterday’s statements show that there will be no mercy, that he is serious, and even more, that this will have consequences on a worldwide change in trade and investment flows.
📚 Trump is trying to initiate a process that could be historic, and go down in the history books. His Make America Great Again seems to be a very long-term plan.
💰 President Trump announced new reciprocal tariffs, the plan puts a 20% levy on the European Union, 46% on Vietnam, 32% on Taiwan, and 34% on China, on top of the existing 20%, for a total tariff of 54% on Beijing. In addition, all imports from the United States will have a 10% baseline duty.
💬 Trump indicated he would consider lowering the tariff rates if other nations remove trade barriers on US exports, suggesting the tariffs are a negotiating tactic.
📉 The announcement sent the stock market plummeting, with the S&P 500 falling over 2% as investors braced for the impact of these escalating trade tensions and the potential economic disruption.
📦 The inclusion of large levies for Asia was definitely a surprise to tech stocks, since it promised to increase costs dramatically across their supply chains.
👟 Nike, Steven Madden, and American Eagle, all of which manufacture in Vietnam, fell in extended trading after Trump made his statement. Apple shares fell more than 6% in late trading Wednesday, leading a larger drop in technology equities following Trump’s tariff decision. Apple manufactures the majority of its gadgets in China. Nvidia, which makes new chips in Taiwan, lost roughly 5.7%.
📊 The tariffs are expected to raise the cost of trillions of dollars in goods shipped annually to the US, further escalating the worldwide trade war Trump began. This could encourage more countries to form alliances that exclude America.
🚗 Tesla reported 336,681 vehicle deliveries in the first quarter of 2025, a 13% decline from the same period a year ago. The Q1 2025 deliveries fell short of investor expectations, which were in the range of 360,000 to 370,000 vehicles.
📈 Despite the weaker than expected delivery numbers, Tesla’s stock price rose 5.3% on reports that CEO Elon Musk would be stepping back from his government advisory role in the coming months. However, Musk himself has discredited the idea that he is on his way out of the government position, suggesting the market reaction may have been premature.
🏛️ The White House has indicated the tariff levels announced by Trump may not be permanent, suggesting they could be open to further negotiations and “horse trading” with different countries.
⚖️ This creates uncertainty for firms trying to make long-term investment decisions, as the tariff regime appears to be shifting and unstable.
🇪🇺 European Commission President Ursula von der Leyen has already pledged retaliation if negotiations over the tariffs fail, signaling that other countries are prepared to fight back against these measures.
🚨 European Commission President Ursula von der Leyen has described President Trump’s new universal tariffs as a major blow to the world economy.
🛡️ Von der Leyen stated that the EU is already finalizing its first package of counter-tariffs in response to the U.S. steel and aluminum tariffs that took effect in March. She also said the EU is preparing for further countermeasures to protect its interests and businesses if the negotiations fail.
🤝 Von der Leyen acknowledged that there are concerns about unfair trade practices that need to be addressed, but she said it is not too late for negotiations to resolve the issues leaving the door open for negotiations to find a resolution and reform the global trade system.
📉 Market View:
📉 The S&P 500 Mini futures plummeted below 5,600 points last night after the announcement of Trump’s new tariffs, even dropping as low as 5,500 points. They are currently trading at 5,545 points.
📉 Meanwhile, Nasdaq 100 futures fell below 19,000 points last night. They are currently recovering slightly and are trading at 19,085 points.
💵 The dollar has also suffered a sharp fall. The dollar index (DXY), which was recently trading in a range of 103.25 to 104 points and had managed to rise above this last level, abruptly lost all that ground, falling below 103 points. It is currently trading at 102.50.
💶 Consequently, the EUR/USD pair has rocketed towards 1.10. It is currently trading at 1.0985.
📉 The European stock markets opened with sharp falls, reflected in charts that show bearish gaps as a clear example of the sell-off caused by Trump’s statements. The DAX 40 plummeted to 22,000 points, from where it has rebounded slightly, now trading at 22,210 points.
📉 The EuroStoxx 50, meanwhile, approached 5,100 points and is trying to recover, trading at 5,145 points.
🛢️ In this context, crude oil has also fallen sharply. A barrel of Brent has returned to the $73 zone, a movement that we had already considered possible in yesterday’s reports. Currently, a barrel is trading at $72.90.
🪙 Gold, as is usual in times of uncertainty, has reacted to the commercial chaos. Yesterday, it reached a new all-time high of over $3,200 an ounce, although it is currently falling slightly to $3,148.
📉 Finally, Bitcoin experienced impressive volatility, reaching a high of over $88,500 before falling back to $82,320.
