Markets news this week was very US-focused, as the world held its breath wondering about the next swathe of tariffs to be introduced by President Trump.
But before that, on Wednesday, Tesla released disappointing sales numbers, having delivered 336,681 cars in the first quarter of the year, well below the 390,000 forecast by analysts and the 387,000 delivered in the same period last year. In reaction, the share price initially dropped by over 6%, but then recovered to end the day up 5% after reports of Trump telling his inner circle Elon Musk would soon leave the administration. Musk’s political stance in the US has damaged the Tesla brand reputation worldwide, as consumers also delayed buying cars with the upgraded Model Y due to be released.
In reaction, the share price initially dropped by over 6%, but then recovered to end the day up 5% after reports of Trump telling his inner circle Elon Musk would soon leave the administration.
The major news this week was the announcement of Trump’s new sweeping tariffs, including a 10% levy on all countries, which come into force on 5th April. This included an additional 34% tariff on China, on top of the 20% already being levied, and Taiwan will also be subject to a 32% tariff, although semiconductors are currently excluded from this due to their importance from a geopolitical point of view. These tariffs could clearly have a profound effect for companies such as Apple and Amazon, as they rely heavily on Chinese manufacturing, as well as other countries being hit with extra levies.
his included an additional 34% tariff on China, on top of the 20% already being levied, and Taiwan will also be subject to a 32% tariff, although semiconductors are currently excluded from this due to their importance from a geopolitical point of view.
Our specialist's final thought
"Clearly, technology companies were the hardest hit by the initial reaction as the tech-heavy Nasdaq dropped 6% on Thursday. Chip-maker Nvidia dropped 7.8% and Apple plunged 9.2%."
