Global Markets React to Trump's New Tariffs: A Detailed Breakdown

Market Reaction to New Tariffs

• 🌍 Investors across Asia and Europe were largely prepared for Trump's tariffs to take effect, leading to a muted initial reaction.
• 📈 Major European indices like the German DAX and CAC 40 saw gains of around 1-1.5%, contrary to expectations of a market downturn.

Asian Market Performance

• 🇭🇰 Hong Kong's Hang Seng index closed up approximately 0.7%, despite 40% of its components being linked to US trade.
• 🇨🇳 China's CSI 300 index remained relatively flat, indicating less exposure to direct US exports.
• 🇯🇵 Japan's Nikkei ended up by 0.7%, with companies like Toyota and Sony having US-based factories, potentially mitigating tariff impacts.

India and Switzerland Face Significant Tariffs

• 🇮🇳 India's Nifty50 index, after being down for most of the day, showed marginal gains, but the country is reeling from 50% tariffs on its exports to the US.
• ⚠️ These high tariffs on India are reportedly due to its continued purchase of Russian oil amidst Western sanctions related to the war in Ukraine.
• 🇨🇭 Switzerland is also impacted with 39% tariffs on key exports like watches, chocolates, and machinery, despite diplomatic talks.
• 💰 Trump cited Switzerland's $40 billion trade surplus as a reason for the tariffs, which talks with the Swiss president did not alleviate.