Sweeping US Tariffs Roil Global MarketsSweepingUSTariffsRoilGlobalMarkets

The US will impose a blanket 10% tariff on all imports and higher duties on select countries, President Donald Trump announced on Wednesday, roiling global markets as investors gauged what a reset of America’s trade policy means for the economy. Stocks, bonds, currencies, and commodities including oil and gold all felt the impact of a recalibration in asset prices during the first trading day after Trump’s tariff rollout. The tariffs, which the White House said were based on effective rates that other countries charge the US, will begin on April 5. Canada and Mexico were not included in the new plan, with an array of goods already subject to separate tariffs. Meanwhile, a 25% tariff on foreign-made cars went into effect on Thursday.

Trump’s plans to reshape the trade landscape present broad implications for the global economy and financial markets. Volatility has been a mainstay in recent weeks amid a flurry of trade announcements and dealmaking, and the latest revelation from the White House may not necessarily provide a capstone. The sweeping tariffs could lead to retaliatory tariffs, bilateral trade negotiations or a combination of both, further altering the outlook. In other economic news this week, investors will have their eye on the Labor Department’s jobs report on Friday. Estimates suggest that US hiring decelerated slightly to 140,000 new jobs from 151,000 the month before, with no change in the unemployment rate of 4.1%. In its Weekly View from the Desk, PGIM Fixed Income addresses the potential labor-market effects of tariffs, implications for fixed-income assets, and ongoing discussions in Washington over federal tax policy.