Global Stock Markets Decline as New U.S. Tariffs Take Effect

BANGKOK -- Stock markets across Europe and Asia experienced a downturn on Tuesday following the implementation of a new set of tariffs by the U.S. government. The tariffs, initiated by President Donald Trump, have seen a 20% increase on various imports, prompting a retaliatory response from China, which has imposed additional duties of up to 15% on American agricultural products.

In Europe, Germany's DAX index fell by 1.8%, settling at 22,733.26, while the CAC 40 in Paris decreased by 1.1% to reach 8,108.71. The UK's FTSE 100 also saw a decline of 0.4%, ending at 8,837.92. In the U.S., futures for the S&P 500 increased modestly by 0.1%, although the Dow Jones Industrial Average remained unchanged.

Asian markets mirrored this trend, with Japan's Nikkei 225 dropping by 1.2% to 37,331.18 and Hong Kong's Hang Seng Index losing 0.4% to close at 22,922.16. The Shanghai Composite index inched up by 0.2% to 3,324.21, while South Korea's Kospi decreased by 0.2%, settling at 2,528.92. Taiwan's Taiex experienced a 0.7% decline, and Bangkok's SET fell by 1.1%.

On the previous day, the S&P 500 suffered a significant drop of 1.8% after President Trump indicated that there was no possibility for negotiation regarding the tariffs, which were set to take effect for imports from Canada and Mexico. This announcement followed a previous delay aimed at allowing more time for discussions.

The Dow Jones also saw a decline of 1.5%, while the Nasdaq Composite dropped by 2.6%.

The escalation in trade tensions has raised concerns among investors, who had anticipated that the president would pursue a more conciliatory approach to international trade relations. The significant losses on Monday reduced the S&P 500's overall gains since Election Day to just over 1%, down from a peak of more than 6% that had been buoyed by optimism regarding Trump's economic policies.

The S&P 500 had reached a record high the previous month, following a series of stronger-than-expected earnings reports from major U.S. corporations. However, the recent downturn has been exacerbated by disappointing economic data, including reports indicating that American households are becoming increasingly concerned about inflation as a result of the tariffs.

One recent report highlighted a slowdown in U.S. manufacturing activity, which, although still growing, did not meet economists' expectations. Manufacturers are facing a contraction in new orders, and prices have risen amid discussions regarding the financial burden of Trump's tariffs.

The market's recent struggles have particularly affected high-profile stocks, including Nvidia, which dropped by 8.8%, and Tesla, led by Elon Musk, which fell by 2.8% on Monday. In early trading on Tuesday, U.S. benchmark crude oil prices decreased by 93 cents to $67.44 per barrel, while Brent crude saw a decline of $1.10, settling at $70.52 per barrel.

The U.S. dollar weakened slightly against the Japanese yen, falling to 149.86 from 149.50, while the euro gained ground, rising to $1.0519 from $1.0488. Additionally, Bitcoin experienced a significant drop, trading at approximately $83,900, down by 8.7%.