Shares in automakers fell further as they brace for 25 percent US tariffs due to kick in next week along with a raft of “reciprocal” surcharges tailored to different countries.
The market mood has soured over fears that Trump’s plans will trigger tit-for-tat measures that would rekindle inflation, which could put the brakes on interest rate cuts and spark a recession.
“Investors remain nervous over the economic repercussions from President Trump’s tariff threats, just days before he unleashes his ‘reciprocal tariffs'” on April 2, said David Morrison, senior market analyst at financial services provider Trade Nation.
In Europe, London just about held the line, closing barely off in the week’s final session. But Paris, Frankfurt and Milan all slid around one percent.
On Wall Street, all three major indexes closed sharply lower, with the Dow tumbling 1.7 percent, the S&P 500 losing 2.0 percent and Nasdaq diving 2.7 percent.
The slide came after official data showed the Federal Reserve’s preferred inflation measure, the personal consumption expenditures (PCE) price index, remained unchanged last month at 2.5 percent.
But another key figure, core inflation, which strips out volatile food and energy costs, rose more than expected at 2.8 percent in February on an annual basis, up from the month before.
In Europe, automakers Volkswagen, Renault and Stellantis, whose brands include Jeep, Peugeot and Fiat, fared particularly badly. Shares in General Motors and Ford also slumped on Wall Street. (AFP)
