The global stock market opened significantly lower on Friday as new tariffs imposed by President Donald Trump took effect, fueling concerns over escalating trade tensions. The declines were compounded by a disappointing U.S. jobs report, which signaled further signs of a weakening labor market.
In early morning trading, the S&P 500 (SPY) dropped to 622.26 USD, down from its previous close of 632.08 USD—a 1.56% decline. Markets across Asia, Europe, and North America posted broad losses in reaction to the dual economic shocks.
In Asia, Hong Kong’s Hang Seng Index fell 1.07% to 24,507.81, mainland China’s CSI 300 slipped 0.51% to 4,045.93, Japan’s Nikkei 225 declined 0.66% to 40,799.60, and South Korea’s Kospi suffered the steepest drop, plunging 3.88% to 3,119.41. In Europe, Germany’s DAX fell 1.7%, the Stoxx 600 dropped 1.3%, and France’s CAC 40 declined 2.1%. India’s BSE Sensex lost 0.34%, while the Nifty 50 dipped 0.48%.
Friday’s sharp market reaction came as Trump’s long-anticipated tariffs went into effect, including a 25% tariff on Indian goods, a 50% tariff on Brazilian exports, and a 39% tariff on imports from Switzerland. The moves reignited fears of a broader trade war and increased uncertainty for global investors.
Adding to the negative sentiment was the release of the U.S. July jobs report, which showed the economy added only 73,000 jobs—far below economists’ expectations of between 100,000 and 170,000. Furthermore, job gains from May and June were revised downward by a combined 258,000, further signaling a slowdown in labor market momentum.
Although Trump had paused tariffs on April 9 to allow more time for trade negotiations, most countries have yet to finalize formal agreements with Washington. U.S. Customs was reportedly given until August 7 to adjust systems before enforcement begins in full.
Markets have remained volatile since the April 2 introduction of Trump’s “Liberation Day” tariffs, which ignited a prolonged standoff with China. With the latest wave of tariffs now active—and the White House threatening further penalties, including against countries that continue to buy Russian energy—investors are bracing for a potential resurgence of full-scale trade warfare between the world’s two largest economies.