Brussels – Following recent announcements by U.S. President Donald Trump regarding the imposition of tariffs on imports from all countries, European and U.S. stock market indexes have experienced significant declines.

On Wall Street, the negative impact was particularly pronounced, with the Dow Jones Industrial Average falling by 3.56 percent, the NASDAQ by 4.89 percent, and the S&P 500 by 3.96 percent.

Concurrently, major European markets also reflected this downward trend, with indices in Frankfurt, Paris, London, and Milan recording substantial losses shortly before market close.

The tariff measures, set to take effect on April 5, will see a minimum level of reciprocal tariffs of 10 percent applied to all trading partners.

Specific tariffs targeting what the administration deems 'naughtier' countries will commence on April 9, with imports from the European Union facing duties of 20 percent, while imports from China are set to be subjected to 54 percent tariffs.

Additionally, existing tariffs on European steel, aluminum, and automotive products have already been established at 25 percent.

By mid-day on April 3, the DAX in Frankfurt had decreased by 2.21 percent, the CAC 40 in Paris by 2.64 percent, and Milan’s FTSE Mib index by 2.24 percent.

London’s FTSE 100 was less affected, with a modest decline of 1.47 percent, as it is subject to the lower 10 percent tariffs.

Asian markets responded similarly to the news, with the Tokyo Nikkei index dropping by 3.3 percent, Hong Kong’s Hang Seng index down by 2.14 percent, and Shanghai’s composite index losing 0.8 percent.

White House spokesperson Karoline Leavitt commented on the market downturn, urging confidence in Trump's policies as a pathway to a 'Golden Age' for the United States.

However, the approach taken by the Trump administration to calculate these tariff rates has drawn criticism and confusion among economists and trade experts globally.

The White House's methodology appears to involve categorizing nations based on their trade surplus with the United States—calculating tariffs by dividing each country’s surplus by their total exports.

For instance, a trade surplus of $291.9 billion with China led to the administration imposing a retaliatory tariff of 34 percent, based on the assertion that China was imposing 67 percent tariffs on U.S. goods.

Tariffs of 20 percent were set for the EU, reflecting a calculated surplus of 39 percent against the U.S.

Critics point out that only the surplus of goods—not services—was considered, and that the calculation of tariffs ignores complexities of international trade dynamics.

Furthermore, analysts highlighted that how these countries’ economic situations influence trade surpluses was overlooked; nations like Cambodia, Laos, and Vietnam, facing unprecedented tariffs of 49 percent, 48 percent, and 46 percent respectively, are typically less affluent and engaged in global supply chains for high-demand products, complicating the narrative of economic inequity.

Nike, one of the largest U.S. companies reliant on international supply chains, reportedly faced significant stock losses as tariffs on Vietnam directly impacted its operations, contributing to a decline of more than 10 percent in its stock value.

This decline reflects broader concerns among investors regarding the stability of international trade relationships and economic forecasts in light of these tariff implementations.