Global stock markets declined on Thursday. Gold reached a new all-time high during the trading session. The moves followed the announcement of new tariffs by U.S. President Donald Trump.
On Wednesday evening, Trump imposed a 25% tariff on imported automobiles. The new duties also apply to foreign auto parts. These measures are set to take effect on April 3, 2025. The decision was confirmed in a White House press release.
The tariffs apply to vehicles from multiple countries. This includes Japan, South Korea, Germany, and others. U.S. officials stated the move aims to support the domestic auto industry.
The announcement had immediate market impact in Asia. Japan’s Nikkei 225 index dropped by 1.4% on Thursday. South Korea’s KOSPI index declined by 1.2%. Auto and parts manufacturers in both countries saw notable losses.
Major Japanese carmakers such as Toyota, Honda, and Nissan fell in Thursday’s trading. Toyota shares declined by 2.1%. Honda lost 1.8%. Nissan was down 1.5%. South Korean companies Hyundai and Kia also saw declines of over 2%.
Several countries issued responses to the U.S. move. Trade ministries in Japan, South Korea, and the European Union promised countermeasures. Officials stated they would consider retaliatory tariffs. Reuters confirmed statements from multiple government representatives.
In the United States, automaker stocks declined sharply. General Motors shares fell by approximately 8%. Ford Motor Company dropped more than 4%. Tesla shares were less affected, declining by 1.2%.
European auto manufacturers also faced losses. Volkswagen stock dropped by nearly 2%. BMW fell by 3%. Mercedes-Benz Group declined by more than 4%. These companies are major exporters to the U.S. market.
The broader European stock index STOXX Europe 600 declined by 0.5%. The index was weighed down by losses in the automotive and industrial sectors. Germany’s DAX dropped by 0.7%, and France’s CAC 40 declined by 0.6%.
In response to rising trade tensions, investors turned to gold. The price of gold hit another record high during Thursday trading. April gold futures rose above $3,071 per troy ounce, according to Comex data.
This marked the highest intraday level ever recorded for gold. The metal has gained nearly 17% since the beginning of 2025. Trading volumes in precious metals increased significantly during the session.
Silver and platinum also moved higher. Silver rose to $27.40 per ounce. Platinum increased to $1,162.80 per ounce. Both metals followed gold’s upward trend.
Gold-backed exchange-traded funds (ETFs) saw strong inflows. Institutional investors increased their holdings. Central banks in several countries reported continued gold purchases in early March.
In currency markets, the U.S. dollar index remained mostly flat. The euro traded near $1.088. The Japanese yen strengthened slightly against the dollar, moving to 149.20.
Bond yields declined in response to investor risk aversion. The yield on 10-year U.S. Treasuries fell to 4.12%. German 10-year bund yields dropped to 2.39%.
Commodities markets experienced higher volatility. Oil prices dipped slightly due to trade concerns. Brent crude fell to $81.20 per barrel. West Texas Intermediate (WTI) traded near $77.60.
U.S. financial markets are now awaiting additional data. On Friday, the Bureau of Economic Analysis will publish the PCE inflation report. The Federal Reserve monitors this index closely.
Market participants continue to monitor developments in trade policy. Additional announcements are expected from U.S. and foreign governments. Investors remain alert to new information regarding tariffs and trade retaliation.
