Global Markets on Edge Ahead of Trump’s Tariff Announcements

Washington, April 2, 2025 – Global financial markets are bracing for impact as investors await highly anticipated tariff announcements from U.S. President Donald Trump, set to escalate his trade war with new customs duties targeting America’s trading partners. Scheduled for 4:00 PM local time at the White House (8:00 PM GMT), the announcement comes after Wall Street’s closing bell, leaving traders and analysts on tenterhooks.

Markets Teeter Amid Uncertainty

“Investors are holding their breath,” said Amanda Sundström, an analyst at Seb financial services. “The uncertainty is sky-high, and the risk of sharp market swings is undeniable.” Jim Reid, an economist at Deutsche Bank, posed a dramatic question: “Will this day go down in history as the end of one era and the start of another?”

European stock markets reflected the tension by midday. At 1:40 PM GMT, the Paris Bourse dropped 0.75%, Frankfurt fell 1.46%, London declined 0.73%, and Milan shed 1.02%. Across the Atlantic, Wall Street opened lower, with the Nasdaq down 0.41%, the Dow Jones slipping 0.30%, and the S&P 500 losing 0.30% in early trading.

Economic Fears and Sector Impacts

Analysts warn that Trump’s tariffs could stoke inflation while hampering economic growth. “Investors in the U.S. are worried these measures will drive up prices and weigh on the economy,” said Fawad Razaqzada of City Index. Ipek Ozkardeskaya of Swissquote Bank predicted “a new phase of uncertainty and turbulence,” with “constant threats of escalation, reversals, and retaliation” looming over markets.

The healthcare sector took a notable hit in Europe, as pharmaceutical exports to the U.S.—a major category alongside automobiles—face potential tariff pressures. “Trump’s duties could hit pharmaceutical exports hard,” said Kathleen Brooks of XTB. Danish drugmaker Novo Nordisk, known for its anti-obesity drug Wegovy, fell 1.90% in Copenhagen. In London, AstraZeneca dropped 1.53% and GSK slid 2.55%, while Switzerland’s Novartis lost 1.36%. In Paris, Sanofi declined 2.42% by 1:40 PM GMT.

Tesla, the U.S. automaker led by Trump supporter Elon Musk, saw its stock plunge over 6% in early Wall Street trading. The drop followed a Wednesday report revealing a 13% year-on-year decline in global sales for the first quarter, far below analyst expectations.

EU Prepares Retaliation

The European Union is poised to respond, according to French government spokesperson Sophie Primas. “There will be a detailed, sector-by-sector analysis, and a united, strong EU decision is expected by the end of April,” she said, signaling a coordinated countermeasure to Trump’s trade policies.

Safe Havens Gain Traction

Amid the unease, gold—a classic safe-haven asset—hovered near record highs. By 1:40 PM GMT, an ounce reached $3,130.87, just shy of its all-time peak of $3,149.00 set the previous day. “Investors are seeking safe places for their money,” noted Susannah Streeter of Hargreaves Lansdown.

The U.S. dollar weakened slightly, down 0.22% against the euro at $1.0817. Oil prices remained cautious, with Brent crude slipping 0.48% to $74.13 per barrel and WTI declining 0.40% to $70.91.

Bond Markets See Inflows

Uncertainty over U.S. trade policy has driven demand for government bonds, particularly U.S. 10-year Treasuries. “These bonds are attracting safe-haven capital flows,” said Ozkardeskaya. As demand rises, yields fall—by 1:40 PM GMT, the 10-year U.S. Treasury yield stood at 4.13%, down from 4.17% the previous day and well below its mid-January peak near 4.80%.

A Waiting Game

With Trump’s tariff details still under wraps, markets remain in a state of suspended animation. The outcome of today’s announcement could reshape global trade dynamics, influence inflation trends, and set the tone for economic policy in the months ahead. For now, investors and analysts alike are left watching the clock.