Global Markets Fall as Trump Signals Tariffs on 'All Countries'

Stock markets across the world fell heavily on Monday after the US president suggested that new tariffs he was expected to announce that week would hit "all countries", crushing hopes that the so-called reciprocal tariffs would target only the countries with the largest trade imbalances with the United States. The threat of a deepening trade war spooked investors from Asia to Europe and into Wall Street, with money rushing into safe-haven assets such as gold.

A selling wave across regions

Shares fell across Asia-Pacific markets, in Europe and in the US. In Tokyo, Japan's Nikkei index lost 4% and South Korea's Kospi fell 3%. The wave of selling swept into European markets as well: the UK's FTSE 100 fell 0.9%, Germany's DAX was down 1.3% and France's CAC lost 1.6%. Wall Street opened sharply lower, though by afternoon the S&P 500 was down 0.4%, the tech-dominated Nasdaq fell 1.2% and the Dow Jones was up 0.2%. Gold hit a record high of $3,128 an ounce as investors sought shelter before the latest tariffs.

'Protectionism has returned with force'

The chief executive of BlackRock issued veiled criticism of the trade tariffs, declaring that protectionism had returned with force and that nearly every client and leader he had spoken to was more anxious about the economy than at any time in recent memory. Economists fear that tariffs on imported goods will push up US inflation as importers pass on costs, and also hurt confidence; data showed American consumer sentiment had fallen to its lowest level since 2022. Goldman Sachs raised its estimate for the probability of a US recession over the next 12 months to 35%, from 20%, while UBS cut its year-end forecast for the S&P 500 from 6,600 to 6,400 points. An index of global stocks produced by MSCI fell 4.5% in March, its worst monthly performance since September 2022, and the US dollar had its worst month in more than two years.

• Nikkei down 4%, Kospi down 3% in Asia-Pacific
• FTSE 100 -0.9%, DAX -1.3%, CAC -1.6% in Europe
• Gold at a record $3,128 an ounce
• Goldman Sachs recession probability raised to 35% from 20%
• MSCI global stock index down 4.5% in March, worst since September 2022

Why it matters

The reaction shows how quickly trade policy can move markets when the scope of tariffs is uncertain. Money managers were de-risking portfolios or sitting on their hands, worried less by the initial tariff volley than by the potential second-order effects of a drawn-out trade war: slower global growth, crimped capital spending and waning consumer confidence.