UBS Group Plunges 4.61% as Trump Tariffs Spark Market Sell-Off

UBS Group's stock price dropped 4.61% in pre-market trading on April 4, 2025, amid a broader market sell-off triggered by US President Donald Trump's announcement of new tariffs. The tariffs, which include a 10% blanket tariff on imports from all countries and significantly higher penalties for some, have sent shockwaves through global financial markets.

UBS Group, along with other major banks and financial institutions, has been significantly impacted by the tariffs. The bank's stock price has been under pressure due to falling yields, which could mean lower margins, and the general weakness on the stock markets. Additionally, UBS's exposure to international trade and its reliance on global economic stability have made it particularly vulnerable to the tariff announcements.

The tariffs have also led to a broader sell-off in the technology and luxury goods sectors, with companies like Logitech and Swatch experiencing significant losses. The uncertainty surrounding the tariffs and their potential impact on global trade has caused investors to seek safe-haven assets, such as gold, which has seen a record high in price.

Furthermore, the tariffs have raised concerns about a potential recession in the US, with JPMorgan increasing the probability of an economic downturn to 60%. This has added to the market's volatility and has led to a sell-off in riskier investments, including equities. The World Trade Organization has also expressed concern about the potential for a tariff war, which could further impair global trade.