Global markets tumble after the US announces sweeping new tariffs

Global stock markets fell steeply on Thursday after President Trump announced a broad set of new tariffs on imports on Wednesday. The plan includes a baseline tariff of 10 percent on most imports and higher rates on goods from dozens of countries, which the White House described as reciprocal.

US stocks had one of their worst days in years, with technology and retail companies among the hardest hit. Many companies rely on supply chains in Asia, where some of the highest tariff rates apply. Markets in Europe and Asia also fell.

The dollar weakened against major currencies, an unusual move during market stress, as investors questioned the outlook for US growth. Oil prices fell on concern about lower global demand. Bitcoin also declined, moving with other risk assets.

Economists warn that tariffs could lead to higher prices for consumers and slower growth. That creates a dilemma for the Federal Reserve, which must balance the risk of inflation against the risk of a weaker economy. Key questions ahead:

• Whether trading partners retaliate with their own tariffs
• Whether the administration negotiates exemptions or reductions
• How companies adjust prices and supply chains

The administration says the tariffs are needed to reduce trade deficits and bring manufacturing back to the US. Markets are signalling concern about the scale and speed of the changes.