The Impact of US Tariffs: A Global Economic Shock

The imposition of US tariffs has sparked a trade war, sending shockwaves through global markets and threatening economic growth worldwide.

Currency Fluctuations

The Bloomberg Dollar Index surged 0.9%, reaching a two-year high, while the Canadian dollar plummeted to its lowest level since 2003 and the euro weakened significantly.

Stock Market Losses

S&P 500 futures tumbled 1.4%, while European carmaker shares plunged, with Volkswagen AG and Stellantis NV dropping over 5%. The move raised concerns about a 5-10% decline in US stocks due to reduced corporate earnings.

Cryptocurrency Crash

Ether and Bitcoin also suffered losses, highlighting a broader shift away from riskier assets.

Economic Impact

Analysts estimate the tariffs could reduce US economic growth by 1.2% and boost core personal consumption expenditures by 0.7%. Emerging markets like Mexico and South Africa also saw their currencies weaken.

Energy Markets

Tariffs on Canadian and Mexican oil threatened to disrupt North America's integrated energy market, potentially increasing gasoline prices in the US.

Market Movements

* Stocks: S&P 500 futures (-1.4%), Nasdaq 100 futures (-1.6%), Dow Jones Industrial Average futures (-1.2%)
* Currencies: Bloomberg Dollar Spot Index (+0.9%), Euro (-1.1%), British Pound (-0.7%)
* Cryptocurrencies: Bitcoin (-1.5%), Ether (-11%)
* Bonds: 10-year Treasury yield (4.55%)
* Commodities: West Texas Intermediate crude (+2.4%)