Global stock markets on high alert as countdown begins for Donald Trump’s ‘liberation day’ tariffs

Stock markets across the globe are on high alert as investors are close to getting some clarity on US President Donald Trump is set to announce tariff plans on Wednesday.

Trump has for weeks pegged April 2 as "Liberation Day", when he plans to impose wide range of new tariffs that could upend the global trade system.

Trump Tariffs

The reciprocal tariffs, aimed at boosting American manufacturing, could have big implications for corporate earnings, global economy, inflation and Federal Reserve’s monetary policy.

Investors expect that Wednesday's long-awaited announcement could be pivotal for the near-term outlook for global financial markets.

They are also unsure about which way prices will swing and what will come next as negotiations could be protracted.

On Tuesday, the White House said that Trump will impose new tariffs on Wednesday, without providing details about the size and scope of trade barriers.

The tariffs on countries that impose duties on US goods would take effect once Trump announces them, White House spokesperson Karoline Leavitt said, adding a 25% tariff on auto imports will take effect on April 3.

Global markets

Wall Street stocks fell on Wednesday. At 09:39 AM the Dow Jones Industrial Average fell 156.51 points, or 0.37%, to 41,833.45, the S&P 500 lost 26.55 points, or 0.47%, to 5,606.52 and the Nasdaq Composite lost 99.07 points, or 0.57%, to 17,350.82.

In Europe, activity across the broader markets was muted, with stocks pointing slightly lower, while currencies and bond yields held steady.

The STOXX 600 European benchmark traded down 1.1% on the day.

Asian markets skittered between gains and losses through the day.

Tokyo, Shanghai, Sydney, Wellington, Taipei, Manila, Mumbai and Bangkok rose, while Singapore, Seoul slipped with London, Paris and Frankfurt. Hong Kong barely moved.

Gold prices held near record highs on Wednesday after soaring to an all-time high in the previous session, as investors awaited details of President Trump's tariff plans.

Spot gold rose 0.3% to $3,119.26 an ounce by 1205 GMT. US gold futures also gained 0.3% to $3,155.80.

Spot silver rose slightly to $33.76, while platinum dropped 0.1% at $978.71, and palladium firmed 0.1% to $984.75.