By Stefan J. Bos, Chief International Correspondent Worthy News
NEW YORK/PARIS/BUDAPEST (Worthy News) – Roughly $1.7 trillion was erased from the S&P 500 Index of the 500 most influential companies at the start of trading at the New York Stock Exchange Thursday amid worries that President Donald J. Trump’s sweeping new round of tariffs could plunge the economy, and much of the world, into a recession.
Financial news agency Bloomberg News reported that the damage was heaviest in companies whose supply chains depend most on overseas manufacturing.
Apple Inc., which makes up most of its US-sold smartphones and other devices in China, was down about 8 percent after the opening. Lululemon Athletica Inc. and Nike Inc., among companies with manufacturing ties to Vietnam, were down around 10 percent. Walmart Inc. and Dollar Tree Inc., retailers whose stores are filled with products sourced outside of the U.S., were trading lower by about 2 percent and around percent, respectively.
Yet long-term investors were expected to see opportunities in the plunging stock markets with shares of major companies trading much cheaper. Gold, mentioned often in Biblical times, has also been trading at record highs, as it is seen as a safe haven in times of crisis.
However, for now, U.S. assets quickly emerged as the biggest losers after the tariffs announcement. The S&P 500 fell about 3 percent, and a dollar gauge slumped.
The impact elsewhere was ‘muted’ in comparison: A broad gauge of Asian stocks fell 0.7 percent, the Stoxx Europe 600 key companies’ index slid 2.6 percent, while the euro currency rose about 2 percent against the U.S. dollar.
Shortly after trillions were erased in stocks worldwide, France’s President Emmanuel Macron called President Donald J. Trump’s tariffs “brutal and unfounded” and even suggested suspending investments in the U.S.
ADDRESSING MEETING
Macron spoke at a hastily arranged meeting of business leaders, discussing how best to protect the French economy following Trump’s tariffs.
He opened by saying that the U.S. president’s decision was “brutal and unfounded,” as he expressed concern about the tariffs’ “massive” impact on France, its overseas territories, and Europe more broadly.
Macron, a key European Union leader, said an answer will need to be found to this move, the latest announcement in what appeared to rapidly escalate into a global trade war.
Trump has vigorously defended his policies, saying that the United States had been “ripped off” by much of the world and that it was now introducing reciprocal tariffs on imported goods.
He also wants to encourage companies to produce in the United States rather than overseas.
However, Macron stressed he agrees with several European Union leaders that
“nothing can be ruled out” in response to Trump’s move as “all instruments are on the table.”
He argued, “We must do whatever is effective and most proportionate … but which also clearly shows we are determined to … not have these sectors fall victim to these tariffs.”
SUSPENDING INVESTMENT
Among available tools, Macon suggested a potential intervention in digital services “where the United States benefits enormously from Europe.”
He also called for the suspension of new and recently announced French investments in the United States until tariffs announced by U.S. President Trump “are clarified.”
Macron told the business leaders at the meeting that continuing with investments while being hit by tariffs would send the wrong message.
France maintained its leading position as the fifth-largest investor in the United States, according to figures provided by the Embassy of France in Washington, D.C.,
In 2023, the French direct investment position in the U.S. reached $370 billion (6.9 percent of total foreign direct investment), up 1 percent in one year, explained data seen by Worthy News.
Copyright 1999-2025 Worthy News. This article was originally published on Worthy News and was reproduced with permission.
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