Global stock markets are experiencing losses as a result of Trump’s new tariffs

After U.S. President Donald Trump declared that tariffs on dozens of trading partners will be implemented on August 7, world stock markets are experiencing losses on Friday.

Only hours before the deadline he set for governments to finalize deals to avert the levies, the Republican president signed an executive order on Thursday that imposes higher tariffs on dozens of countries, a move he asserts aims to «restructure» global trade in favor of the United States.

As the tariffs will not come into effect until next Friday, there is room for negotiation; for instance, Mexico received a 90-day extension to «sign» an agreement.

The measures for the countries targeted by these latest announcements vary from 15% to 41%.

The stock markets across Europe, Asia, and Oceania were affected, resulting in losses that impacted companies in various ways and created a sense of caution among traders assessing the implications for the global economy.

On Friday, European stock markets ended with losses:

In Paris, there was a decrease of 2.91%.
Frankfurt -2,66 %
Milan – 2,55 %
Madrid – 1,88 %
London -0.7%.

The Stoxx Europe 600 index, comprising the 600 largest market capitalizations on the continent, dropped by 1.33 percent.

In Asia, certain stock exchanges experienced significant downturns, like Seoul with a drop of 3.88 percent, while other markets saw more moderate losses, such as Tokyo’s decline of 0.66 percent.

The Hang index in Hong Kong closed the day down by 1.07 percent.

In the United States, the market responded to an economic indicator—the increase in unemployment to 4.2% in July—which has sparked concerns about a slowdown in the world’s largest economy.