Global Markets Tumble on Trump Tariff Surge and Weak Earnings

Global stock futures across Asia, Europe, and the United States fell sharply following the announcement of new U.S. tariffs late Thursday evening. The measures, which range from 10% to 41%, were introduced by President Donald Trump just hours before the August 1 deadline and include an additional 40% penalty on goods rerouted to avoid existing tariffs. The timing of the announcement coincided with weak tech earnings and an upcoming U.S. jobs report, compounding the market sell-off [1].

Asian markets bore the brunt of the initial impact. Japan’s Nikkei 225 closed down 0.59%, while South Korea’s KOSPI Index dropped 3.61%. Hong Kong’s Hang Seng Index fell 0.61%, and the Hang Seng Tech Index declined 0.23%. Australia’s ASX 200 lost 0.89%, and India’s Nifty 50 slid 0.29%. Chinese markets were also affected, with the Shanghai Composite down 0.46% and the yuan on track for its worst weekly decline in over six months. The offshore yuan fell 0.7% since July 25, and the People’s Bank of China set its reference rate below 7.15, signaling continued pressure on the currency [2].

Technology stocks in Asia saw mixed performance. Tokyo Electron plummeted 17% at midday Singapore time, while Renesas Electronics edged up 0.7%. In South Korea, SK Hynix fell 5.12%, and Foxconn rose 1.12%. In Hong Kong, major losers included China Petroleum & Chemical Corp and Li Auto, both down over 2% [3].

The sell-off extended to European markets as traders opened on a weak note. London’s FTSE 100 dropped 0.2%, Germany’s DAX fell 0.6%, and France’s CAC 40 remained flat. Broader European benchmarks also declined, with the Stoxx Europe 600 down 0.3% and the Euro Stoxx 50 off 0.5%. The lack of clarity around enforcement of the new tariffs created uncertainty, triggering a risk-off sentiment and prompting investors to reassess their positions [4].

In the U.S., pre-market futures reflected continued pessimism. The S&P 500 futures dropped 0.16%, Nasdaq 100 futures fell 0.23%, and Dow Jones futures slid 0.15%. Amazon took a hit after announcing a gloomy operating income forecast, with shares plunging over 6% in after-hours trading. In contrast, Apple saw a 2% rise after beating earnings and revenue expectations [5].

The U.S. dollar index continued to climb amid the sell-off, with analysts noting that the dollar’s strength had broken the yuan out of a tight trading range and created new opportunities for short-term trading. The yen weakened further after the Bank of Japan held interest rates steady despite a raised inflation forecast [6].

Analysts have highlighted the synchronized nature of the global market reaction, emphasizing the interconnectedness of financial systems and the ripple effects of protectionist trade policies. The uncertainty surrounding enforcement of the tariffs and potential disruptions in supply chains has left investors cautious. With no immediate signs of a policy reversal, the pressure on global equity markets is expected to continue in the near term [1][2][3][4][5][6].

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[1] title: U.S. to Raise Tariffs on Scores of Nations — Live Updates

url: https://www.wsj.com/livecoverage/stock-market-today-dow-sp-500-nasdaq-07-31-2025-2?gaa_at=eafs&gaa_n=ASWzDAj0AV9gFu_lMDgbne_XjI_8G3pJwl6qve6H3D_yYnLi82v2J-8SYvHA&gaa_sig=nj4FAghawo4oUNfwwJcgtvKbImIqbhP5q-e3nBhO_nwqE6HfK6-UDdVxp46klN8HV4tFO9j-wGpBgVuTOr-77Q%3D%3D&gaa_ts=688c651a

[2] title: Asian Markets Mixed Amid Tariff Uncertainty

url: https://www.nasdaq.com/articles/asian-markets-mixed-amid-tariff-uncertainty

[3] title: Asia stocks mixed ahead of US tariff deadline; S.Korea ...

url: https://www.investing.com/news/stock-market-news/asia-stocks-mixed-ahead-of-us-tariff-deadline-skorea-drops-on-govt-tax-hike-plan-4164819

[4] title: EMEA Morning Briefing: Trump Hits More Countries With ...

url: https://www.morningstar.com/news/dow-jones/2025080161/emea-morning-briefing-trump-hits-more-countries-with-higher-tariffs

[5] title: US futures rise on earnings boost, yen gives back post-BOJ ...

url: https://www.reuters.com/world/china/global-markets-wrapup-5-2025-07-31/

[6] title: Dow, S&P 500, Nasdaq slide to solid month on sour note ...

url: https://finance.yahoo.com/news/live/stock-market-today-dow-sp-500-nasdaq-slide-to-solid-month-on-sour-note-as-trumps-tariff-deadline-jobs-report-loom-200350814.html