Global Markets React to Trump's Auto Tariff Announcement

Global stocks fell as U.S. President Trump announced 25% tariffs on automotive imports, impacting Japanese and South Korean markets. European futures also pointed to a lower open. Chinese shares outperformed, while Wall Street futures recouped some losses. The announcement sparked concerns over inflation and international responses.

Global stock markets took a hit on Thursday following U.S. President Donald Trump's announcement of new 25% tariffs on auto imports. The move primarily impacted Japanese and South Korean markets as the Nikkei and KOSPI indices fell by 1% and 1.3% respectively, with major automakers seeing significant losses.

European stock futures signaled a lower open, while Chinese shares outperformed the region. Analysts suggested the tariffs aimed to pressure European and Asian markets, although Trump's remarks about potential leniency suggest room for negotiation with China over TikTok.

Wall Street futures managed a modest recovery despite earlier losses, but concerns about rising U.S. inflation and international responses persisted. Treasury yields remained steady in Asia, reflecting market caution amid the shifting economic landscape.

(With inputs from agencies.)