US stocks fall, investors flee because of Trump's reciprocal tax

NBC News (USA) reported that global markets reacted strongly and quickly after US President Donald Trump announced plans to impose reciprocal tariffs on a series of countries. Investors "fled" US stock indexes, and the stock prices of companies dependent on the global supply chain plummeted.

"Stock markets were "bloodbathed" on April 3 after Donald Trump delivered a "stunning blow" by announcing large-scale tariffs targeting both US partners and rivals, sparking a global trade war that many fear will lead to an economic recession and escalate inflation. Japan's Nikkei index led the sell-off in Asia, plunging more than 4%," AFP news agency commented.

According to VNA correspondent in New York, a series of US stock codes fell after trading hours when President Trump announced reciprocal tariffs. The Dow Jones index fell 256 points, equivalent to 0.61%; the S&P 500 index fell 1.69%; and the Nasdaq 100 index fell 2.54%.

Shares of many multinational companies also fell. Nike, a sportswear giant, lost 7% and Apple, a company that has been hit by a 6% decline.

Import retailers were hit hard. Five Below fell 11%, and GAP fell 12%. Tech stocks also fell on potential risks, with Nvidia down 4% and Tesla down 5%.

Meanwhile, on the morning of April 3, the world spot gold price reached a new peak of 3,169 USD per ounce. The reason was that investors bought gold as a safe haven after Mr. Trump announced reciprocal import tariffs, escalating trade tensions.

“The reciprocal import tariffs are much higher than expected, causing the dollar to weaken and other assets to sell off,” said Tai Wong, an independent precious metals trader, who predicts prices will soon hit $3,200. Prices have risen more than $500 since the start of the year.

Mr. Trump announced a 10% tax on all imports into the US. Major trading partners will be subject to much higher reciprocal taxes. For example, China will be subject to an additional 34%, bringing the total additional tax rate during this term of the US President to 54%, the European Union (EU) will be subject to 20% and Vietnam will be subject to 46%.

The Dollar Index, which measures the strength of the greenback against a basket of major currencies, fell 0.4% immediately after Mr. Trump's statement. It is now down 0.6%, at 103 points.

The yuan on the international market fell to a 2-month low. The yield on 10-year Japanese government bonds fell the most in 8 months.

“The new import tariffs will pose a major risk to global trade. Supply chains in East Asia will be particularly stressed,” said Zhiwei Zhang, chief economist at Pinpoint Asset Management.