Mount Fuji and the Shinjuku skyline in Tokyo, Japan, on Friday, Feb. 14, 2025.
Global markets shuddered Wednesday as gold surged to a record $4,813 per ounce, fueled by U.S. President Donald Trump’s unexpected threat of new tariffs. The specter of escalating trade tensions sent investors scrambling for the safety of gold, a traditional haven during economic uncertainty.
Hong Kong’s Hang Seng index managed a slight gain, rising 0.42% while the mainland’s CSI 300 closed flat at 4,723.07. Japanese markets experienced more pronounced declines, with the Nikkei 225 losing 0.41% to end the day at 52,774.64 and the Topix falling 0.99% to 3,589.7. South Korea’s Kospi saw a modest increase of 0.49% to 4,909.93, but the Kosdaq index dropped 2.57% to 951.29. Australia’s S&P/ASX 200 fell 0.37% to 8,782.9.
The source of the market turmoil? President Trump announced Saturday that eight European nations would face a 10% tariff starting Feb. 1, escalating to 25% by June 1 unless negotiations yield U.S. control of mineral-rich Greenland. He didn’t stop there. Trump also threatened a staggering 200% tariff on French wine and champagne, reacting to President Emmanuel Macron’s refusal to join his proposed “Board of Peace.”
Adding to the international friction, Trump sharply criticized the United Kingdom’s plan to cede sovereignty of the Chagos Islands – home to a joint U.K.-U.S. military base – to Mauritius, labeling it an “act of great stupidity” and citing it as further justification for acquiring Greenland for national security reasons.
European leaders have swiftly condemned Trump’s tariff threats as “unacceptable” and are actively considering retaliatory measures. France is reportedly pushing for the European Union to deploy its Anti-Coercion Instrument, a powerful economic tool designed to counter coercive tactics.
U.S. stock futures experienced a slight rebound in early Asian trading hours, following the worst trading day for major U.S. averages in three months. Overnight, the Dow Jones Industrial Average shed 870.74 points, or 1.76%, closing at 48,488.59. The S&P 500 dipped 2.06% to settle at 6,796.86, and the Nasdaq Composite slid 2.39%, closing at 22,954.32. This marked the worst session for all three major averages since October. Simultaneously, U.S. Treasury yields spiked while the U.S. dollar weakened as investors fled U.S. assets.
