Global Markets Rattle as Trade War Continues to Escalate:
Global financial markets have experienced widespread turmoil following the announcement
by U.S. President Donald Trump’s administration of a new package of tariffs targeting the country’s main trading partners.
While the White House argues that these measures are intended to restore trade balance,
their immediate impact has been a sharp sell-off in markets and a decline in the shares of major companies,
most notably Apple, amid growing fears of a global economic recession triggered by the escalating trade war.
As the trade war continues to escalate,
its ripple effects are being felt across industries and continents, reshaping the landscape of global finance.

Contents

Apple at the Heart of the Trade Conflict

Global Markets Stumble

Key Tariffs Announced by Trump

Impacts of the Trade War on Financial Markets

Directly Affected Companies

Analyst Commentary and Warnings

Exceptions and International Responses

An Uncertain Future for Markets

Apple at the Heart of the Trade Conflict

Despite Apple’s ongoing efforts to insulate its supply chains from trade policy volatility over the years,
the company has again found itself at the center of the intensifying trade conflict.
The U.S. administration imposed tariffs of up to 34% on imports from China,
raising the total tariff rate to 54%—a direct threat to the supply chain
that Apple relies on to manufacture most of its products.

The new tariffs target China and several countries hosting Apple production facilities,
complicating its diversification strategy away from Beijing. Tariffs of 26% have been levied on India,
where iPhones and AirPods are made; 46% on Vietnam,
which produces AirPods, iPads, Apple Watches, and Macs; 24% on Malaysia,
a hub for Mac production; 36% on Thailand for some Mac models;
and 20% on Ireland (EU), where certain iMacs are assembled.

These developments contributed to a 7.9% drop in Apple’s stock during
extended trading after an 11% decline since the start of the year.
Although Apple has not issued an official statement,
Bloomberg Intelligence analysts believe the company is unlikely to raise prices to offset the increased costs,
fearing damage to consumer trust.

Apple announced a $500 billion investment in the U.S. over four years
to strengthen its relationship with the U.S. government.
This investment includes AI server production in Texas and chip manufacturing in Arizona.
The Mac Pro, which starts at $6,999, is the only Apple device fully assembled in the United States.

Global Markets Stumble

Global markets are experiencing significant volatility due to escalating trade tensions.
The latest round of U.S. tariffs triggered a broad sell-off in equities and bonds.
Futures for the S&P 500 dropped by 3%, and Nasdaq 100 futures fell by approximately 4%.
Japan’s Nikkei 225 hit an eight-month low in Asia, while South Korea’s Kospi reached its lowest level since January 3.
Australian stocks also fell to their lowest levels since March 14,

reflecting global anxiety sparked by the sudden policy shift.
Global Markets Rattle further with every announcement, spooking investors and amplifying recession fears.

Key Tariffs Announced by Trump

The new tariff package from the U.S. targets several major trading partners with varying rates,
raising global concerns over a deepening trade conflict.
China faces the highest rate at 34%, followed by Vietnam at 46%,
Japan at 24%, and the European Union at 20%.
Australia and South Korea are also affected, with 10% and 25% tariffs,
respectively—highlighting the broad scope of U.S. trade measures targeting key global manufacturing centers.

Impacts of the Trade War on Financial Markets

The negative repercussions of the trade war escalation have not been limited to equities;
they have also extended to commodities and currencies, revealing deep concern about the future of the global economy.

West Texas Intermediate (WTI) crude oil and copper fell by more than 2%,
indicating weak investor appetite for growth-oriented assets.
Conversely, gold hit a new record high due to increased demand for safe-haven assets,
and the Japanese yen rose 1.1% as investors turned to defensive currencies.

Bond yields declined sharply in the U.S., Japan, Australia, and New Zealand.
At the same time, the Asian Credit Default Swap (CDS) index widened to its highest level in 19 months,
signaling growing concerns about credit risk.

Directly Affected Companies

Several major global corporations topped the list of those impacted by the new tariffs.
Apple’s stock fell 6.9% due to its reliance on Chinese supply chains.
Sportswear companies like Nike, Gap, and Lululemon Athletica saw drops
of over 7% because of their manufacturing presence in Vietnam.
Tech companies such as Nvidia and Advanced Micro Devices (AMD) also reported notable losses.
Industrial giants Caterpillar and Boeing were similarly affected by concerns over disrupted supply chains and weakening global demand.

Analyst Commentary and Warnings

Several top financial analysts have weighed in on the current situation,
unanimously acknowledging its seriousness and complexity.
Kim Forrest of Boque Capital Partners described the scenario as “bad in the short term,”
warning of severe and immediate consequences for markets and companies.
Vineer Bhansali from LongTail Alpha likened the situation to a “multi-player, unclear game,”
highlighting investors’ uncertainty. Steve Chiavarone of Federated Hermes suggested
that this could be the “peak” of the trade escalation and may be followed by negotiations to de-escalate tensions.

Exceptions and International Responses

The White House announced that steel and aluminum imports under trade agreements
with Canada and Mexico would be exempt from the new tariffs to minimize the impact on U.S. industries.
Treasury Secretary Scott Bessent urged trade partners not to retaliate.

In response, China began restricting its investments in the U.S.,
the European Union is preparing an emergency economic support package,
and Canadian Prime Minister Mark Carney confirmed that Canada is ready to respond.

An Uncertain Future for Markets

The 10% decline in the S&P 500 index over just 16 trading sessions marks the seventh-fastest drop in its history,
based on data spanning five decades.
In response, the Chicago Mercantile Exchange has imposed limits
to prevent gains or losses exceeding 7% during overnight trading sessions.

On Wall Street, institutions like Goldman Sachs and Bank of America have lowered their forecasts for the S&P 500,
although they still expect the index to end 2025 at higher levels.

Investors are now bracing for the release of unemployment claims data and the non-farm payroll report,
coinciding with the launch of the earnings season in mid-April.
These updates are expected to reveal the extent to
which trade tensions have affected capital spending and consumer behavior,
particularly after U.S. companies posted their lowest level of share buybacks since October 2020.

Global Markets Rattle as Trade War Continues to Escalate

global-markets-rattle-as-trade-war-continues-to-escalate

Global Markets Rattle as Trade War Continues to Escalate

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