Market Mayhem: Stocks Slump, Gold Hits New High Amid Trump's Tariff Shock

 

Donald Trump's newly announced tariffs have sent shockwaves through the market, causing stocks to slump and gold prices to soar to new heights. The tariffs, which Trump has dubbed "Liberation Day," are expected to have far-reaching consequences for the global economy .

The US will establish a "minimum baseline" tariff of 10% on all countries, with some countries facing even higher tariffs. For example, the UK will be subject to a 10% tariff on its goods, while China will face a 34% "discounted reciprocal tariff" .

The move has been met with concern from economists and investors, who warn that the tariffs could lead to higher prices for consumers, reduced economic growth, and even a recession. The tariffs are also expected to have a significant impact on global trade, with some countries likely to be hit harder than others .

In response to the tariffs, investors have been flocking to safe-haven assets like gold, which has hit a new high. Stocks, on the other hand, have taken a hit, with the S&P 500 opening down on the news .

It's worth noting that the impact of the tariffs will depend on various factors, including the specific tariffs imposed, the response of other countries, and the overall state of the global economy. As the situation continues to unfold, investors and economists will be watching closely to see how the tariffs affect the markets and the economy as a whole.