Global Trade Turmoil: Stocks Stumble and Gold Soars

Global stocks fell and gold reached a record high following President Trump's new tariffs on auto imports. The tariffs strained U.S., European, and Asian markets, with automakers particularly hit. Meanwhile, gold prices soared, reflecting market caution amidst the escalating trade war.

In a decisive move, President Donald Trump intensified the trade war by announcing 25% tariffs on all imported cars and auto parts, effective April 3. This announcement sent global stock markets into a decline, while spot gold prices surged to a new record high.

The tariffs, targeting both European and Asian auto manufacturers, prompted mixed responses from U.S. stock markets. While traditional automakers like General Motors and Ford saw significant losses, electric vehicle makers Tesla and Rivian capitalized on the situation with an uptick in stock value, thanks to their fully domestic production lines.

International markets reacted with caution as they braced for potential retaliatory measures. As uncertainties loom, the impact on global economies could delay Federal Reserve rate adjustments, although gold prices benefited from increased demand as a safe-haven asset.

(With inputs from agencies.)