Trump open to tariff flexibility as markets suffer historic drop

US President Donald Trump on Thursday signalled a willingness to negotiate after markets plummeted in response to his administration’s newly announced reciprocal tariffs.

Wall Street recorded its worst trading session since the pandemic-era collapse of 2020.

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Speaking to reporters aboard Air Force One, Trump hinted he might reconsider the tariff terms if other nations offered significant concessions.

“If somebody said that we’re going to give you something that’s so phenomenal, as long as they’re giving us something that’s good,” he said.

His remarks came shortly after several White House officials had maintained that the sweeping tariffs would not be negotiable. That contradiction deepened uncertainty, sending stock markets into a steep decline.

Nearly $2 trillion (€1.8 trillion) in value was wiped off the S&P 500 on Thursday alone. The tariff announcement, made a day earlier on what the administration called “Liberation Day,” introduced sweeping reciprocal levies affecting 180 nations.

The scale of the move triggered fears of a global recession or a downturn like the Great Depression of the 1920s.

Trump dismissed those concerns, insisting the economic impact would be short-lived and that stock markets “are going to boom.”

Michael Brown, senior research strategist at Pepperstone London, noted, “Policy uncertainty is unlikely to recede any time soon and is likely to continue to cloud the outlook for some time to come – harming both business and consumer sentiment while also making it impossible for market participants to price risk.”

On Wednesday, Trump had announced a 10% baseline tariff on all imports, with additional duties aimed at countries considered trade offenders.

The 10% tariff will take effect on April 5, while the reciprocal measures will begin on April 9, leaving very little room for talks.

The US stock market reacted sharply. The Dow Jones dropped over 1,600 points, or 3.98%. The S&P 500 fell 4.84%, and the Nasdaq Composite tumbled 5.97%.

Big tech stocks were among the worst hit. Apple slid 9.25% amid concerns about its supply chain and international sales.

China, one of Apple’s major markets, now faces 54% in import levies from the US. Beijing responded by promising “resolute countermeasures.”

Amazon and Meta Platforms each lost 9%, while Nvidia declined 7.8%.

Other members of the Magnificent Seven group were down between 2% and 6%.

Retailers also suffered. Nike fell 14.4%, Lululemon dropped 9.6%, and Ralph Lauren plunged 16.3%.

The US dollar weakened as investors sold off American assets.

The dollar index dropped below 102, reaching its lowest point since October 2024.

At the same time, haven currencies such as the euro, Japanese yen, and Swiss franc strengthened.

US government bonds surged. The yield on the 10-year Treasury note dropped 9 basis points to 4.04%.

With bond prices moving inversely to yields, investor demand for safer assets drove prices higher.

Gold also climbed, though it later retreated from its highs.

In Europe, markets followed the downward trend. The Stoxx 600 fell 2.7%, Germany’s DAX dropped 3.01%, and France’s CAC 40 slid 3.31%.

Trump’s 20% tariff on goods from the European Union rattled confidence.

In response, French President Emmanuel Macron urged European companies to suspend investments in the United States.

Luxury brands with large US exposure took a heavy hit. LVMH dropped 5.62%, Hermès 3.51%, Richemont 6.32%, and Kering 7.51%.

Adidas, heavily reliant on international markets, fell nearly 12%.

Automakers continued to slide after the 25% auto tariffs took effect.

Volkswagen dropped 4.42%, BMW lost 3.55%, and Porsche declined 3.06%.

(Euronews.)

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