This morning has been challenging for major European stock markets, which are experiencing significant declines, and Lisbon is no exception. The downturn is attributed to Donald Trump’s inflexibility regarding tariffs imposed on the United States’ trading partners.
In Portugal, the Lisbon stock exchange opened today with a sharp decline, as the PSI (Portuguese Stock Index) fell by 5.26%, reaching 6,286.68 points.
Similarly, the major European stock exchanges opened in freefall, following the trend set by Asian markets.
These declines follow Friday’s collapse on Wall Street, triggered by the tariff impositions by Donald Trump and Beijing’s response.
What is frightening investors?
Losses accelerated after China matched the significant increase in duties announced by Trump last Wednesday, escalating a trade war that could end with a global economic recession. This possibility is what concerns investors.
Even a better-than-expected U.S. labor market report, released on Friday and typically regarded as the month’s economic highlight, was insufficient to halt the market downturn. Almost all stocks in the S&P 500, except for 14, fell on Friday.
China’s response to the American tariffs led to an immediate acceleration of losses in global markets. The Ministry of Commerce in Beijing announced it would retaliate against the 34% tariffs imposed by the U.S. on imports from China with its own 34% tariff on all American imports starting April 10, along with other measures.
The United States and China remain the world’s two largest economies.
Trump announced on Wednesday that he plans to impose tariffs on countries worldwide. Regarding these tariffs, the U.S. President claimed they would bring unprecedented and rapid growth.
For the European Union, Trump indicated the tariff would be 20%, arguing that the EU taxes American goods at an average rate of 39%, whereas South Korea, for example, imposes nearly 50% on average. The tariffs on South Korean products by the United States will be 26%.
Oil also feels the impact
The price of Brent crude oil for June delivery opened today down by 2.83% on the London futures market, trading at $63.72, after declines in Asian markets due to the tariff impact.
The North Sea crude, which is Europe’s benchmark, fell 2.83% compared to Friday’s close, when it traded at $65.58, remaining below the $70 mark.
The oil market is affected by U.S. President Donald Trump’s global tariff impositions and China’s counteraction, with a 34% tariff on imported U.S. goods. Beijing’s decision will take effect on April 10, according to a statement from the Chinese government.
Taipei’s Taiex stock index recorded its most significant daily decline in history amid investor panic following Trump’s tariff announcements on Taiwanese products last week.
