World shares tumble as Trump’s tariffs approach.

Stock markets in Asia and Europe have declined after President Donald Trump indicated that new tariffs he plans to unveil this week will affect all nations, not just those with the largest trade deficits with the US.

Trump expressed these remarks while getting ready to reveal a significant list of import duties on Wednesday, which he has referred to as America’s “Liberation Day.” The actions will be in addition to tariffs already set by Washington on aluminium, steel, and vehicles, along with heightened taxes on all products from China.

“You’d start with all countries,” Trump told reporters on Air Force One. “Essentially all of the countries that we’re talking about.

However, he stated that his administration would be “much more generous” and “more compassionate” than the way the countries treated the US. With 48 hours remaining until the tariffs take effect, the UK is still engaged in negotiations with the US regarding an exemption.

On Sunday, Downing Street announced that Prime Minister Sir Keir Starmer engaged in “productive negotiations” with Trump during a phone call, stating that discussions would “proceed swiftly”. On Saturday, officials indicated that the UK would not hesitate to implement its own tariffs on the US if necessary.

Other regions, including the European Union and Canada, have indicated that they are readying various retaliatory trade actions. Kevin Hassett, head of the National Economic Council, recently informed the Fox Business channel that the tariffs would target 10 to 15 nations with the largest trade deficits with the US, although he did not specify which ones.

Trump views trade tariffs – which would be paid by US firms bringing in goods – as a means to safeguard the American economy from unjust competition and as leverage to secure improved trading conditions. Worries regarding a trade war are disturbing markets and fueling recession fears in the US. Japan’s Nikkei 225 index finished over 4% lower on Monday, and South Korea’s Kospi closed down 3%.

In the UK, the FTSE 100 index decreased by approximately 1.2% on Monday, whereas Germany’s Dax index and France’s Cac 40 both dropped by around 1.7%. The value of gold increased to a new record, reaching $3,128.06 per ounce. Gold is frequently perceived as a more secure investment during times of economic uncertainty and declining stock prices.