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As soon as the tariffs issue arose, the global market went into a frenzy!
As soon as the Tokyo stock market opened in the morning, it fell to trigger a circuit breaker and paused trading, while the stock of giant Samsung in South Korea directly hit the limit down. The exchange was anxious and pulled out trillions of Korean won to stabilize the market.
The new energy stocks in China are suffering the most, with CATL dropping nearly 10% in a day, and the RMB exchange rate has also hit a new low in several years.
The situation is more intense over in Europe, with German chemical giant BASF's stock price dropping 12% in a single day. The CEO sent out a letter overnight saying they need to reconsider the tens of billions worth of investments in China. The parent company of LV in Paris saw its stock price plummet, with the CFO losing his voice during a conference call, stating that sales in the China region have halved. The London Metal Exchange is even more outrageous, with a fund using a computer program to sell $730 million worth of copper futures in just 11 seconds, causing the system to crash.
Wall Street in the U.S. is not in a good state either, with Tesla's stock price dropping below $150 and a Saudi billionaire dumping $750 million worth of stocks all at once. The bond market is in chaos, and professional traders say this volatility is scarier than the 2008 financial crisis. The worst off are the cryptocurrency speculators, as Bitcoin fell below $51,000 in a single day, and a major player secretly transferred over 20,000 Bitcoins to the exchange to crash the market, causing a total liquidation of $5.8 billion across the network.
Insiders are all in a panic - a Hong Kong investment bank mogul said that 15% of funds were redeemed by clients in two hours, Swiss private banking clients would rather lose 25% than not cash out immediately, and Singapore traders are complaining in groups that everything they buy is falling, and they can only hold cash and wait for the storm to pass.
Central banks around the world are also restless. Japan is frantically buying stocks, Switzerland suddenly cut interest rates, and financial institutions at the Federal Reserve are desperately hoarding cash.
The most crucial issue now is that there is a "retroactive clause" hidden in the US tariff details, which means that cars using Chinese batteries will have to pay additional taxes. The supply chains that global car manufacturers have built over the past five years will all have to be rebuilt from scratch. Experienced traders say they've never seen anything like this; it's not just a normal rise or fall, it's simply a major reshuffling of the global economy!