US tariffs worse than expected, risk selloff accelerates [Video]
![US tariffs worse than expected, risk selloff accelerates [Video]](https://editorial.fxsstatic.com/images/i/usa-gran-canyon_XtraLarge.png)
Trump’s tariff announcement was worse than expected. The market reaction to the tariff announcement is strongly negative. The pricing in currency markets suggests rising retaliation bets to the US tariffs. The US dollar eased to the lowest level since Trump entered the White House, the lowest levels this year and the lowest levels since mid October. The tariff announcement sent Cable directly up above the 1.30 psychological mark. The EURUSD trades above the 1.09 level while the USDJPY tanked to 147.
Inside equities, the afterhours trading looked like a bunch of US companies announced disappointing earnings all at once. Apple – that’s still got great exposure to China – tanked more than 7% in the afterhours, Nike also fell by a similar amount, while Nvidia lost more than 5% and Tesla tanked more than 8%.
The futures are deeply in the red with the S&P500 futures pointing at almost 3% losses at the time of writing, while Nasdaq futures point at losses more than 3%. Europe opens down.
The next hours and days will be shaped by the world’s reaction - likely retaliation - and how much effort and money countries will deploy to fight back.
Author
Ipek Ozkardeskaya
Swissquote Bank Ltd
Ipek Ozkardeskaya began her financial career in 2010 in the structured products desk of the Swiss Banque Cantonale Vaudoise. She worked in HSBC Private Bank in Geneva in relation to high and ultra-high-net-worth clients.
