Key takeaways:

• President Trump's new tariffs lead to significant declines in global stock markets.
• The US dollar faces its largest intraday drop in a decade.
• Concerns grow over a potential recession impacting demand for goods, driving oil prices down sharply.

The latest wave of tariffs announced by President Donald Trump has significantly impacted global financial markets, with major stock indexes and the dollar experiencing sharp declines. On April 3, Wall Street saw a considerable decrease with the Nasdaq Composite diving approximately 6%, reflecting the market's overall negative response to the newly imposed tariffs. The S&P 500 also faced its largest daily drop since 2020, falling markedly as investors assessed the severity of Trump's proposals.

The dollar suffered a staggering 2.6% drop against the euro, marking its biggest intraday plunge in a decade. Trading losses extended to other currencies with sharp declines noted against the yen and British pound. This massive sell-off was evident as investors abandoned equities in favor of safer assets, resulting in significant drops in tech-heavy stocks. Notably, tech giant Apple saw a reduction exceeding 9% as fears of the implications of tariffs on its supply chain loomed.

Specific sectors, such as apparel, were hit particularly hard; Nike and Gap experienced losses of over 11% and 20% respectively, illustrating broader market instability. The automotive sector was not spared, with Stellantis declaring a halt in production at select manufacturing plants due to surging car tariffs.

Moreover, oil prices experienced a sharp decline, sinking over 6% amidst concerns that an economic downturn would diminish global demand. Prices for crude oil dropped to around $66 per barrel as traders adjusted their forecasts in response to the unfolding situation.

The repercussions of Trump's tariffs are expected to reverberate throughout the global economy. Analysts predict that persistent tariffs could lead to prolonged economic stagnation with possible rate cuts from the Federal Reserve to spur growth in a contracting economy.

Internationally, responses to these tariffs are emerging, with both the European Union and China hinting at countermeasures. EU chief Ursula von der Leyen indicated plans for further retaliatory actions while emphasizing the importance of dialogue. Trump himself acknowledged the shockwaves caused by his tariff policies but remained optimistic about the long-term strength of the US economy, saying it would emerge "far stronger."

As governments worldwide brace for the economic fallout, financial analysts continue to monitor market responses closely. The combination of Trump's tariffs, falling stock prices, and a weakening dollar suggests volatile times ahead for both the US and global economies. Investors are advised to stay informed about ongoing developments as they unfold.

For further information, see the full reports from Channel News Asia, Bangkok Post, Le Monde.