Shares and oil prices tumble worldwide as China retaliates against President Trump’s sweeping trade levies
Global markets endured another day of heavy losses on Friday (4 April), with both equities and oil prices continuing their dramatic slide after China retaliated against US tariffs imposed by President Donald Trump.
The market turmoil deepened as Beijing unveiled a hefty 34 per cent tariff on all American imports, effective from 10 April, fuelling fears of a full-scale trade war. Investors reacted with alarm, fearing that more nations could follow suit, while the United States might intensify its stance further.
Chris Beauchamp, chief market analyst at IG, described the mood as “extremely fragile,” noting a widespread rush among investors to liquidate assets. “There’s a real sense of panic. Markets are pricing in serious global disruption,” he said.
Wall Street opened sharply lower. The Nasdaq Composite slipped into bear market territory, having dropped over 20 per cent from its December peak. The Dow Jones shed 994.46 points (2.45%) to end at 39,551.47, while the S&P 500 and Nasdaq Composite also fell significantly—down 2.48% and 2.86% respectively.
Europe fared no better. Frankfurt’s DAX index plunged over 5%, Paris declined 4.2%, and London’s FTSE 100 dropped 3.9%.
Commodities also felt the impact. Crude oil futures plummeted another 7%, following a 6.5% fall the day before, as weak demand expectations combined with an unexpected increase in output from OPEC+. Copper prices, often seen as a bellwether of industrial demand, fell more than 5%.
Adding to market tensions, China introduced export restrictions on seven rare earth elements, including gadolinium and yttrium, critical to medical imaging and electronic devices.
The wider fallout was swift. In Japan, where new US tariffs are as high as 24%, Prime Minister Shigeru Ishiba called the move a “national crisis”. Tokyo’s Nikkei index closed down 2.8%, with automakers like Toyota, Nissan, and Honda suffering losses of over 4%.
Vietnam’s market plunged 4.6%, building on Thursday’s dramatic 7% fall triggered by a near 50% US tariff hike. Indices across Singapore, Bangkok, Kuala Lumpur, and Mumbai also dropped, while markets in China, Hong Kong, and Taiwan remained closed for a holiday.
Thursday had already seen the worst day on Wall Street since the height of the COVID-19 crisis, with the S&P 500 and Dow down 4.8% and 4%, respectively.
Looking ahead, investors await US jobs data and a speech from Federal Reserve Chairman Jerome Powell for clues on the economic outlook.
Meanwhile, French President Emmanuel Macron urged European firms to pause investments in the US, denouncing Trump’s tariff measures as “brutal” and “destabilising”.
