Global Markets Tumble Amid Tariff Fears as Trump Signals New Policies

Asian stocks experienced declines, currencies were volatile, and European markets seemed poised for similar downturns, as investors reacted to incoming U.S. President Donald Trump's tariff threats against Canada, Mexico, and China. The announcement disrupted currencies, with the Mexican peso and Canadian dollar both showing weakness, while Japan's yen strengthened.

Asian stocks fell sharply on Wednesday as investors braced for further U.S. tariffs under President-elect Donald Trump. European markets signaled similarly negative moves, worrying investors following new tariff threats to Canada, Mexico, and China.

The Mexican peso and Canadian dollar weakened significantly, hitting multi-year lows, though the New Zealand dollar rebounded after a central bank rate cut. The Japanese yen, considered a safe-haven asset, continued its upward trajectory, affecting the profits of export-heavy sectors.

The global market's previous day's gains were taken back across various regions, with futures indicating continued bearish trends due to the uncertainty around Trump's economic policies and international trade dynamics.

(With inputs from agencies.)