Global markets decline sharply following Trump’s threating of tariffs on China
(MENAFN) Global financial markets moved lower on Tuesday after US President Donald Trump removed Federal Reserve Governor Lisa Cook and signaled new tariffs targeting China.
Trump announced Monday that Cook had been dismissed from her role over allegations of mortgage fraud. The action has been widely viewed as a challenge to the independence of the central bank.
Regarding tariffs, Trump stated he would enforce additional duties on nations that implement digital services taxes unless those measures are repealed. He added that restrictions could be applied to the export of US-protected technology and chips to such countries.
He also singled out China, saying, “if they do not supply magnets to the US, they would face a ‘200% tariff or something.’”
On Monday, the New York Stock Exchange experienced a sell-off amid the tariff concerns. The S&P 500 fell 0.43%, the Nasdaq declined 0.22%, and the Dow Jones Industrial Average dropped 0.77%, according to reports.
Trump’s decision on Cook, announced after market hours, also influenced asset prices. The 10-year US Treasury yield was at 4.3% as of 06:15 GMT Tuesday, while US index futures suggested further losses. Gold traded at $3,377 per ounce, rising 0.3% amid worries about the Fed’s independence.
The dollar index ended Monday 0.6% higher at 98.3 and stood at 98.4 on Tuesday, 0.1% above the prior close.
European stock exchanges also saw widespread selling on Monday, with indexes continuing to trend downward on Tuesday, reflecting developments in the US markets.
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