Stock markets in the United States and Europe declined on Wednesday as investors remained cautious ahead of U.S. President Donald Trump’s expected announcement of new tariffs.
The dollar and oil prices dipped, while gold, considered a safe-haven asset, neared a record high.
Despite slight gains in Tokyo and stable Chinese markets, European stocks fell, led by losses in Frankfurt. Wall Street’s major indexes also opened lower.
“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, an analyst at Scope Markets.
Global equities have faced pressure in anticipation of Trump’s announcement, which he has referred to as “Liberation Day.” He has argued that the United States has been “ripped off” for years and has warned that both allies and rivals could be affected by the new trade measures.
While Trump had initially suggested the tariffs would mirror levies imposed by other nations, reports indicate he is also considering a blanket 20-percent tariff or a plan that grants certain countries preferential treatment.
The White House has confirmed that Trump will unveil his decision at 4:00 p.m. in Washington (2000 GMT), after U.S. markets close. The president has promised that the move will usher in a “golden age” for American industry, though officials acknowledged Tuesday that final details were still being discussed.
Chris Weston, an analyst at Pepperstone Group, noted that if the tariffs take effect immediately, markets could gain some clarity, though it would limit room for negotiations.
“This scenario—while hardly a positive for economics or earnings assumptions—would increase the conviction behind how we respond to the ‘facts,’” he said. “That said, life is never straightforward, and we will still need to consider the counter-response from other countries.”
Concerns over a potential global trade war have intensified, with several nations warning they are preparing countermeasures. Economists have cautioned that the tariffs could slow economic growth and reignite inflation, raising doubts about the likelihood of further interest rate cuts from central banks.
