On July 24, President Donald Trump’s new tariffs on 60 countries took effect, sending shockwaves through global markets. The measures, replacing temporary 10% levies, imposed 10% to 12.5% duties on imports, targeting goods from China, Europe, and other regions. This move coincided with surging oil prices, as WTI crude spiked as much as 8% intraday to $90 per barrel amid Middle East tensions, further fueling inflation concerns. The U.S. Dollar hovered near a three-week high, pressuring Asian currencies and triggering a roughly 4.8% plunge in the tech Magnificent Seven
index, which lost $797 billion in market value in a single day.
Global Markets React to New Tariffs
The new tariffs, announced under Section 301 of the Trade Act of 1974, targeted imports citing so-called “forced labor”. According to finance.biggo.com, the measures officially kicked in at 12:01 a.m. Eastern Time on July 24, replacing expiring duties. Asian currencies like the Japanese yen weakened against the dollar, while the U.S. dollar climbed near a three-week high.
Oil prices exacerbated the turmoil. WTI crude surged up to 8% intraday to break above $90, closing at $92.79, while Brent crude closed up 4.7% at $94.92, with the September delivery futures contract settling above $100. The spike followed Houthi attacks on Saudi oil tankers and renewed U.S. strikes on Iran, heightening fears of supply disruptions. The Federal Reserve’s upcoming meeting loomed large, with investors wary of further rate hikes amid inflation risks. OCBC warned that sustained oil shocks could trigger broader dollar rallies, compounding pressure on emerging markets.
Tech Stocks Suffer Largest Single-Day Losses
The Magnificent Seven
tech stocks—including Tesla, Google parent Alphabet, Amazon, Meta, and Microsoft—plummeted, with Tesla falling 14.52% and Meta dropping 3.36%. finance.biggo.com reported the group shed $797 billion in combined market value, marking one of the worst single-day performances in U.S. stock history. Chinese ADRs also declined, with Alibaba down 2.13% and iQIYI falling 2.42%. The S&P 500 dropped 1.21%, the Nasdaq Composite fell 2.15%, and the Dow Jones Industrial Average slid 0.97%.
The sell-off reflected fears of higher trade barriers stifling global growth. FXStreet noted that equities faced “fierce selling” as investors reassessed corporate earnings and supply chain risks. The dollar’s strength further pressured commodities, with gold and silver trading weaker despite safe-haven demand. Analysts warned that a break below key technical support levels on the S&P 500 could trigger wider selloffs.
Trump’s Digital Tax Threats and Tech Sector Impact
Trump escalated trade tensions by threatening 100% tariffs on countries imposing digital services taxes (DSTs) on U.S. companies. CNBC reported the president vowed to immediately impose
such tariffs, targeting Numerous European Countries
considering DSTs. This shift moved the trade war from physical goods to online advertising and cloud computing, with Meta and Alphabet facing the highest exposure due to their reliance on European ad revenue.
The Supreme Court’s rejection of Trump’s reciprocal tariff framework limited new DST tariffs to 150 days under Section 122 of the Trade Act of 1974, requiring congressional approval for extensions. 247wallst.com highlighted that Amazon, Apple, and Microsoft also faced significant risks. The White House faces legal hurdles, but markets have already priced in policy uncertainty, with tech stocks bearing the brunt of the volatility.
Meanwhile, China and the U.S. accelerated talks on reciprocal tariff cuts worth $30 billion each. finance.biggo.com cited Chinese Commerce Ministry Director-General Meng Huating stating that both sides were exploring the advancement of a reciprocal tariff cut framework arrangement worth $30 billion each.
This signal suggested efforts to ease tensions, even as unilateral U.S. measures continued.
The turmoil also impacted Trump Media, whose stock fell 6.1% to $7.06 on Thursday, marking its sharpest drop of the week so far. Forbes noted the company’s shares had fallen over 46% since the start of the year, with $405.9 million in net losses for the first three months of 2026. Despite a 2024 IPO at $70.90, Trump Media’s market cap remained just shy of the $2 billion mark as of Thursday.
As markets grappled with the fallout, the Federal Reserve’s upcoming meeting and China’s Politburo gathering loomed as critical junctures. Investors awaited signals on monetary policy and Beijing’s response to softer economic data, while geopolitical risks from the Middle East added to uncertainty. The dual pressures of tariffs, oil prices, and trade negotiations left global markets in a fragile state, with no clear resolution in sight.
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