[Source/Observer Network, Zhang Jingjuan] On April 2nd, the "reciprocal tariffs" that US President Trump had been hyping for a long time were finally implemented.

Bloomberg reported on April 2nd with the headline "In Trump's Tariff Policy, the United States Has Become the Biggest Loser of the Market", stating that Trump's tariff policy has shaken the global trade system, but its damage to US assets has exceeded many large economies that have just been hit by the "tariff stick".

Trump chose to announce the "reciprocal tariff" policy after the US stock market closed. After the announcement of the new policy, US stock futures plummeted across the board, and US technology stocks also suffered heavy losses in after-hours trading. As of the time of writing, Apple fell 7.14%, Tesla dropped 8.01%, Amazon fell 6.13%, Nvidia dropped 5.70%, Microsoft fell 2.92%, Google fell 3.48%, and Facebook fell 4.78%. The total market value of the seven major US tech giants evaporated by more than 700 billion US dollars (approximately 5109 billion RMB).

The report pointed out that other regions have been affected relatively less. In Europe, the Euro Stoxx 50 index fell more than 2%, and the benchmark indices of Germany, the UK, and France all fell more than 1%. In Asia, the Nikkei 225 index fell nearly 3%, the South Korean KOSPI fell nearly 1%, and the main indices of the A-share market also fell slightly. The Shanghai Composite Index fell 0.24%, the Shenzhen Component Index fell 1.4%, and the ChiNext Index fell 1.86%.

The general decline in global markets clearly shows that investors do not expect any winners to emerge from this increasingly fierce trade war. However, it also indicates that the United States itself may be one of the biggest victims of Trump's protectionist policies.

On April 2nd, 2025, local time, Washington, USA, US President Trump announced a state of emergency to enhance America's competitive advantage, protect American sovereignty, and strengthen national and economic security in the United States. IC Photo

In addition to the stock market, the dollar also suffered a blow, experiencing its worst day of the year so far.

As of the time of writing, the US Dollar Index is reported at 102.22. The US dollar continued to fall against the Japanese yen, with a drop of 1.83%, reaching 146.53, the lowest level since October last year. The euro rose against the US dollar, expanding the intraday gain to 1.57%, currently reporting at 1.1026.

The yield on the US 10-year Treasury note fell to its lowest level since October last year, further dragging down the dollar.

Ray Attrill, head of foreign exchange strategy at National Australia Bank Ltd., said: "The tariff news has exacerbated concerns about US economic growth, leading to further declines in US stocks, which means the dollar no longer enjoys support from its traditional status as a safe haven and reserve currency."

The report stated that due to investor concerns that Trump's policies would stimulate inflation and increase the probability of a recession in the world's largest economy, the announcement of the tariffs brought even greater pressure to an already troubled US stock market this year.

According to a recent report released by Goldman Sachs, as the US government's tariff policies impact the global economy and financial markets, the probability of a US economic recession within the next 12 months has risen to 35%, higher than the previous expectation of 20%. In addition, Goldman Sachs has lowered its target point for the S&P 500 index at the end of the year from 6200 points to 5700 points, marking the second downward revision since March.

Scott Chronert, US equity strategist at Citigroup, said in a report that the newly announced tariff policy increases the risk of "damaging consumer and business confidence," and even if the tariffs are eventually canceled, this risk may persist. He stated that the bank will lower its expectations for the US stock market.

Neil Birrell, chief investment officer at US asset management company Premier Miton Investors, said in a telephone interview: "Global asset allocators will view the United States in a completely different way. Will international investors sell US assets and start transferring funds? Yes, they may do so."

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7489059663795831305/

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