Global markets dropped sharply on Friday as investors reacted to U.S. President Donald Trump’s surprise order to impose new tariffs on 68 countries and the European Union, set to take effect in seven days.

The announcement — which replaced a previous August 1 deadline — added fresh volatility to an already fragile global trading environment.

In early European trading, Germany’s DAX fell 1.5% to 23,697.31, the FTSE 100 in London declined 0.7% to 9,068.97, and France’s CAC 40 lost 1.6% to 7,647.56. U.S. futures were also lower, with the S&P 500 and Dow Jones Industrial Average both down 0.8%.

In Asia, Japan’s Nikkei 225 slipped 0.7%, South Korea’s Kospi tumbled 3.9%, Hong Kong’s Hang Seng dropped 1.1%, and China’s Shanghai Composite edged down 0.4%. India’s Sensex dipped 0.4%, and Taiwan’s TAIEX lost 0.5%.

Stephen Innes of SPI Asset Management described the move as a “structural rewrite” of trade policy, raising the average U.S. tariff to 15.2% from 13.3%, compared to 2.3% before Trump returned to office. Canada is expected to be hit especially hard.

Rabo Bank strategist Benjamin Picton criticized the policy as “imperial trade,” suggesting the U.S. is favoring high-value sectors at the expense of global partners.

On Wall Street Thursday, major indexes closed lower as a rally in tech stocks faded. The S&P 500 dipped 0.4%, the Dow lost 0.7%, and the Nasdaq ended just below flat.

Health care stocks led the losses after the White House asked major pharmaceutical firms to cut drug prices within 60 days. UnitedHealth dropped 6.2%, Eli Lilly fell 2.6%, and Bristol-Myers Squibb lost 5.8%.

Meanwhile, Meta surged 11.3% after reporting strong earnings, and Microsoft rose 3.9% on upbeat cloud performance.

In commodities, U.S. crude rose 15 cents to $69.41 a barrel, and Brent added the same to reach $71.85.

The dollar weakened to 150.55 yen, while the euro edged up to $1.1419.

Source: Agency