The Imperial Presidency

[robkelk]

U.S. dollar slides, Wall Street losses expected as global markets react to tariffs

U.S. Treasury yields slid, China's yuan dropped to a seven-week low, and the dollar came under heavy selling pressure.

The dollar index, which measures the U.S. currency against six others, fell 1.6 per cent to 102.03, its lowest since early October. The dollar index is down more than 5.7 per cent this year.

The euro, the largest component in the index, gained 1.5 per cent to a six-month high of $1.1021 US.

The yen strengthened to a three-week high against the dollar and was last up 1.7 per cent at 146.76 per dollar, while the Swiss franc touched its strongest level in five months at 0.86555 per dollar.

"It's very difficult actually to see how other countries make concessions that would encourage the U.S. to lift these tariffs. And I think that's a big underpriced risk," said Nicholas Rees, head of macro research at Monex Europe.

Apple sank 6.5 per cent, hit by an aggregate 54 per cent tariff on China — the base for much of Apple's manufacturing. Microsoft dropped 1.8 per cent, Nvidia slipped 3.5 per cent and Amazon.com fell 5.1 per cent.

"Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic,' which will keep markets on edge for the foreseeable future," said Adam Hetts, global head of multi-asset and a portfolio manager at Janus Henderson Investors.

Retailers were hit hard on Thursday, with Lulemon falling 10.3 per cent, Nike dropping 8.3 per cent and Walmart 6.2 per cent after Trump imposed some of the most punitive tariff rates on major production hubs including Vietnam, Cambodia, Indonesia and China.

Auto industry heavyweights were also also down — General Motors by two per cent and Tesla falling about five per cent.

It looks like Liberation Day has liberated the US Dollar from its spending power. And the US stock markets haven't opened yet.

Enjoy being poorer, folks.