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The dollar crashed Thursday and global stock markets fell as investors rushed to increase the damage to the world’s largest economy from Donald Trump’s trading war.
The dollar fell 2.1 percent against a basket of trade partners’ currencies, on the right track for its worst day since 2022, as investors worried about lower growth from the level of comprehensive US imported tariffs, and betting interest rates.
“The market has shaken more towards concerns about how these steep tariffs can pose greater risks to the US economy,” Paul Mackel, the Global Fx Research head in HSBC, said.
The fall came after the White House on Wednesday revealed the 10 percent tariffs for almost all US imports, and 20 percent taxes on EU goods and 34 percent for Chinese goods, on the tariffs already announced.
Shares of export -centered companies led a stock sale in Europe and Asia, while the future of US shares collapsed after markets withdrew from Trump’s full attack on the Global Trade Order.
Stoxx Europe 600 was reduced 1.9 percent in early trading, with a decline led by consumer cyclic and financial shares while investors worried about the economic consequences of tariffs against European nations and their revenge.
“It is worse than expected, there is no sugar clothing,” said Zhikai Chen, head of global developing market capital at BNP Paribas Asset Management.
Adidas and Puma retailers were reduced 10 percent and 9 percent respectively, while the standard Chartered banking group lost 8 percent. Carmaker Volvo was down nearly 10 percent.
In Wall Street, the future showed a 3.3 percent decline for S&P 500, accumulating further pain in a market that had already been pushed into a correction this year from Trump’s tariff threats and a sale in the technology sector.
US bank shares were about to open lower, with Goldman Sachs down 4 percent in pre -market trading and JPMORGA down more than 3 percent. The Nvidia chipmaker was nearly 5 percent lower, as technology shares extended their latest declines.

“The war of trade is a little messy,” said Stephen Jeni, chief executive of the Euraizon asset manager SLJ. He said the shock would be “staging for the US and elsewhere, and the financial markets would have to withstand this shock” until some of the tariffs are reduced.
Strategists said that the rate of dollar fall – with the currency that failed to perform its traditional role as a refuge in stress times – reflected increasing concerns about US institutional strength.
“The US administration’s approach to calculating tariffs raises serious concerns about policy reliability, undermining (Dollar),” George Saravelos told Deutsche Bank.
The euro increased $ 2.1 percent to $ 1,109, on the right track for its largest one-day growth since 2022.
Elsewhere in global shares, FTSE 100 in the UK was reduced 1.3 percent. Japan’s Topix closed 3.1 percent lower and Hong Kong’s dependent index fell 1.5 percent.
The markets were reorganized according to the pain level fulfilled by new trade taxes. The Vietnam stock index was down about 7 percent, the primary performance index followed by Bloomberg, as the country was hit with a 46 percent, one of the largest fee.
Japanese Jen gathered 1.9 percent while traders demanded protection between the dollar fall.
Government bonds increased as investors demanded security. Ten -year -old US Treasury yields fell 0.13 percentage points to 4.06 percent while the price of debt increased.
Traders are now appreciating three or four interest rates in the quarter from the federal reserve to boost the US economy, from three Wednesday, according to the levels implied by the exchange markets.
“Even if the tariffs eventually decrease by the end of the year, the close shock and associated uncertainty are likely to direct a close slowdown in the US economy and reduce the full year growth of 2025 in the vicinity or under 1 percent,” said Mark Hoefele, the leading investment official at UBA Global Wealth Management.
Gold pricing fell back to $ 3,108 a troy ounce after growing overnight in a high record during Asian trading. Economically sensitive goods fell, with prices of raw oil brunt, slipping 4 percent.
Jim Reid, at Deutsche Bank, said that investors had been “very optimistic” on comments before the announcement by Treasury Secretary Scott Bessent that starting taxes would be lids.
“It is definitely more dramatic than expected,” said Ding Shuang, chief of great China in Standard Chartered. “Even for China additional growth (fee) is higher than expected.”