The S&P 500 and Dow Jones joined the FTSE 100 in the red as US markets opened following Trump’s tariff onslaught.
The S&P plummeted over three per cent in early trading, whilst the Dow slid nearly three per cent marking a loss of 1,200 points.
The tech-heavy Nasdaq Exchange, which includes Tesla and Apple, slumped over four per cent as markets opened.
This followed markets across Europe plunging this morning, with the FTSE 100 down nearly two per cent.
Germany’s Dax lost over two per cent and Cac 40 in Paris tumbled over three per cent as markets opened in New York.
Chris Beckett, head of equity research at Quilter Cheviot, said: “These tariffs will have a profound impact on the global economy. While some of the tariffs could have been worse, these are still extreme levels we are seeing.
“Growth will be down and inflation up and this is ultimately going to hit consumers and consequently result in lower earnings for companies. Any company producing goods outside of America is going to struggle and there are no quick fixes.”
Lenders were FTSE 100 top fallers
The FTSE 350 Bank index had dropped over seven per cent at 14:30BST, as top lenders dragged UK’s flagship index down.
Standard Chartered sunk over 10 per cent whilst HSBC and Barclays were both down nearly eight percent.
William Howlett, financials analyst at Quilter Cheviot said: “Fundamentally, banks are levered plays on the economies in which they operate.
“The outsized tariffs are seen against Asian economies and in that context, it is understandable that the Asian banks (HSBC and Standard Chartered) have sold off the most.”
He added: “We wait to see how central banks react and whether they see these tariffs as a one-off adjustment and therefore are more likely to cut rates to manage the economic fallout. This would create some pressure on net interest income for banks.”