U.S. President Donald Trump has indicated potential adjustments to his administration’s newly imposed reciprocal tariffs after global markets cratered on Thursday, marking Wall Street’s worst day since the 2020 pandemic meltdown.
Trump’s hinted flexibility on tariffs contradicted earlier White House claims that the tariffs, starting with a 10% blanket import duty on April 5 and escalating with reciprocal measures on April 9, were non-negotiable.
Speaking aboard Air Force One, Trump suggested he could soften the tariff stance if nations offered substantial trade concessions, saying, “If they’re giving us something phenomenal, as long as it’s good for us, I’d consider it.”
His remarks followed a tariff rollout announced Wednesday, termed “Liberation Day,” which slapped levies on 180 countries, Nigeria included.
Nigeria, hit with a 14% tariff, recorded the naira’s highest depreciation against the dollar this week at the official foreign exchange market. Dropping to N1,552.53 per dollar on Thursday from N1,531.25 traded on Wednesday.
Afreximbank Research has said that U.S. President Donald Trump’s announced reciprocal tariffs may have a limited direct impact on African economies, given the continent’s deepening trade ties with China.
The tariffs sparked a $2 trillion wipeout in S&P 500 value, igniting fears of a global economic slump akin to the 1920s Great Depression.
The Dow Jones sank 1,600 points (3.98%), the S&P 500 shed 4.84%, and the Nasdaq plummeted 5.97%.
Tech giants took a beating: Apple fell 9.25% as its China market, now hit with 54% US levies, faltered, prompting Beijing to pledge “firm retaliation.”
Amazon and Meta each dropped 9%, Nvidia lost 7.8%, and other “Magnificent Seven” stocks declined 2% to 6%. Retailers like Nike (down 14.4%), Lululemon (9.6%), and Ralph Lauren (16.3%) also suffered as trade disruption loomed.
European markets echoed the decline, shaken by a 20% US tariff on EU goods. The Stoxx 600 fell 2.7%, Germany’s DAX dropped 3.01%, and France’s CAC 40 slid 3.31%. French President Emmanuel Macron urged EU firms to pause US investments, escalating tensions.
The US dollar weakened sharply, with the dollar index dipping below 102, its lowest since October 2024, as investors offloaded American assets. Safe-haven currencies, including the euro, yen, and Swiss franc, gained ground.
US 10-year Treasury yields fell 9 basis points to 4.04%, reflecting a rush to bonds as prices climbed. Gold rose briefly before easing, underscoring market unease.
Dismissing dire forecasts, Trump insisted the economic pain would be brief, predicting a stock market rebound. Yet, experts like Michael Brown of Pepperstone London cautioned that “lingering policy uncertainty will weigh on business and consumer confidence, making risk pricing nearly impossible.” With tariffs set to hit in days and little time for talks, the global economy teeters on the edge of a trade war, with analysts warning of prolonged instability.
