Global financial markets are in turmoil as investors react to the looming implementation of new U.S. tariffs. President Donald Trump’s announcement of widespread tariffs, including a 25% levy on imported automobiles set to take effect soon, has intensified fears of a global trade war.
Stock indices have suffered sharp declines. Japan’s Nikkei 225 has dropped over 4%, entering correction territory at its lowest level since September. South Korea’s Kospi has also fallen by 3%, while European markets, including the Stoxx 600 and FTSE 100, have experienced significant losses.
As uncertainty grips investors, gold prices have surged to record highs. Spot gold has risen 1.1% to $3,116.82 per ounce, surpassing previous records and marking an 18% increase this quarter—the largest surge since 1986.
The U.S. dollar is also under pressure, heading for its worst monthly performance since 2022. Goldman Sachs has raised the probability of a U.S. recession in the next 12 months to 35%, up from 20%, citing economic risks tied to the tariffs.
As market volatility continues, investors are closely monitoring developments and seeking safe-haven assets to mitigate potential risks.
