US officials admitted Donald Trump was still ironing out the details late on Tuesday (US time). Photo: AFP / Saul Loeb
US and European stock markets fell as investors fretted over what shape US President Donald Trump's fresh wave of tariffs would take at the end of the day.
The dollar and oil prices dipped while gold, viewed as a safe-haven investment, came close to achieving a fresh all-time high on Wednesday (Northern Hemisphere time).
After Tokyo's stock market closed up slightly and Chinese indices steadied, Europe dropped, led lower by Frankfurt, and Wall Street's leading indexes followed after the open.
"For traders and investors, today represents a day of huge uncertainty as we weigh up the potential for retaliatory tariffs and a tit-for-tat trade war," said Joshua Mahony, analyst at traders Scope Markets.
A trader works on the floor of the New York Stock Exchange at the opening bell in New York City, on April 2, 2025. Photo: AFP / Charly Triballeau
Global equities have been hit hard leading up to Trump's announcement - dubbed "Liberation Day" - with warnings that friend and foe are in the crosshairs after what he says is years of "ripping off" the United States.
He has trailed the measures for weeks, initially suggesting they would match whatever levies other countries impose.
But US media reported he has also considered either blanket 20-percent levies or another plan where some countries get preferential treatment.
Sweeping auto tariffs of 25 percent announced last week are also due to come into effect on Thursday.
The White House has said Trump will unveil his decision at 4pm (9am NZ time) in Washington (2000 GMT), after Wall Street markets close, with the Republican promising a new "golden age" of US industry.
However, officials admitted he was still ironing out the details late on Tuesday.
Chris Weston, analyst at investors Pepperstone Group, said the suggestion that the tariffs would be effective immediately would provide some certainty to markets, even if it limited the scope for talks.
"This scenario - while hardly a positive for economics or earnings assumptions - would increase the conviction behind how we respond to the 'facts'," he explained.
"That said, life is never straightforward, and we will still need to consider the counter-response from other countries."
The planned duties have ramped up fears of a global trade war after several countries warned they were preparing their responses.
Economists have warned that economic growth could take a hit and inflation reignite, dealing a blow to hopes that central banks would continue cutting interest rates.
Tesla shares sank around five percent in early trading after the electric car maker released lacklustre sales figures.
The firm reported a 13-percent drop in first-quarter auto sales amid lower production during factory upgrades, as well as perceived customer reluctance over chief executive Elon Musk's work for the Trump administration.
-AFP
