Stock Markets Tank as Trump Unfolds New Tariffs

Stock markets on Friday fell after a weaker-than-expected job report came out and President Trump unveiled steep tariffs on many more countries.

On Friday morning, jobs report shook investors’ fears about the subsequent consequences: Employers created only 73,000 jobs in July, which is fewer than the estimated 100,000 jobs economists had expected. Consequently, the unemployment rate increased from 4.1% in June to 4.2% in July.

As for the major index funds, the Dow Jones Industrial Average and the S&P 500 declined by more than 1% each. Both of these two index funds represent the top companies in the U.S. and the top companies in the industrial field specifically. In addition, the tech-heavy Nasdaq dropped more than 2%, its biggest single-day loss since May and April.

Thursday night, Trump released his long-awaited plan for tariffs on US trading partners. This plan laid out tariffs, ranging from 10% to 41%, on countries all over the world, set to take effect on August 7.

In the past few months, investors have tried to ignore Trump’s tariffs, hoping that the president will back down on his most daunting threats. But, as President Trump tempered his approach, markets are forced to try to adjust to the unsettling prospect of an increasingly protectionist global order. But the scope and unprecedented nature of the tariff campaign start to roil the global economy and markets.

“The market is tired of the tariff drama,” Peter Ricchiuti, senior professor of finance at Tulane University, told CNN. “There is also the recognition that the tariff damage will get worse.”

“Companies shipped an enormous amount of product before some of the tariffs were implemented,” Ricchiuti said. “This inventory will be winding down and prices will be reflecting the tariffs.”

However, not only was the U.S. impacted on Friday, but also stocks in Europe and Asia.

Europe’s benchmark Stoxx 600 index sank 1.89%, while Germany’s DAX index and France’s CAC 40 index dropped 2.66% and 2.91% respectively.

Both of the indexes posted their biggest loss in a single day since early April.

In Asia, markets were only slightly lower, except in South Korea, where the benchmark index tumbled 3.88%. Hong Kong’s Hang Seng index dropped 1.07%, Japan’s Nikkei 225 fell 0.66% and Taiwan’s benchmark index sank 0.46%.

Despite the announcement of Trump’s tariff plans, losses were still relatively contained, at least so far, compared to the intense turmoil of early April when there was an unusual sell-off in US stocks, bonds, and the dollar.