Following President Donald Trump's latest and strongest set of tariffs, financial markets around the world are facing major losses.
The US stock market, however seems to be experiencing the biggest impact from this situation.
On Thursday, April 3, the Dow Jones Industrial Average fell by more than 1,200 points (almost 3%), while the S&P 500 index dropped over 3% and the Nasdaq index declined by more than 4%.
While, financial markets in other countries also experienced declines.
Japan's Nikkei index dropped by 2.8% and South Korea's Kospi benchmark fell by 1.1%.
President Trump has announced a new tariff of at least 10% on nearly all imported goods starting this weekend with even higher tariffs on products from certain countries, including US allies.
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As per the reports, imports from Canada and Mexico are temporarily exempt from the new tariffs.
Economists have warned that these new tariffs will lead to higher prices and slower economic growth in the United States and could potentially cause recessions in many other countries.
The tariffs are almost nine times higher than the previous year's import tax rate in the US.
With this step, President Trump is setting up an economic barrier with tariffs to limit imports.
This is aimed at promoting domestic manufacturing and reducing reliance on foreign products.
Related: US Senate vote to block new tariffs on Canada, rebuking trade war
