Auto Tariff Chaos: Global Stock Markets React

Global stock markets declined as U.S. President Trump imposed 25% tariffs on auto imports, affecting major carmakers. European and U.S. markets suffered losses, with Asian stocks also impacted. Investors fear trade tensions may hinder growth and increase inflation, as gold prices rise and oil prices fall.

Global stock markets took a hit on Thursday following U.S. President Donald Trump's imposition of new tariffs on auto imports. The 25% tariffs on vehicles and foreign-made auto parts led to significant drops in the shares of major carmakers, including Japanese and South Korean stocks.

U.S. automakers also suffered; General Motors and Ford saw their stocks decline as investors worried about the repercussions on supply chains. In Europe, leading car manufacturers such as Volkswagen, BMW, and Mercedes-Benz experienced losses, prompting the STOXX 600 to reach its lowest point since mid-March.

Concerns over the potential impact of escalating trade disputes on global growth and U.S. inflation have emerged. Meanwhile, gold prices hit near-record highs as investors sought safety, while oil prices fell amid fears of reduced global demand. The currency markets showed resilience, with the dollar index slightly down despite trade tensions.

(With inputs from agencies.)