Gold Reaches New High in US After Trump Imposes Reciprocal Tariffs on ‘Liberation Day’
Gold prices surged to unprecedented levels on Thursday following President Donald Trump’s announcement of new tariffs on major trading partners. As investors sought safe havens amid declining stock market futures, gold climbed above $3,150 an ounce, reaching a record high of $3,167.57 during the trading session. This spike in gold prices reflects a nearly 20% increase since the beginning of 2025, highlighting the growing uncertainty in global financial markets.
Trump’s Tariff Strategy Unveiled
In a press conference held at the White House Rose Garden, President Trump unveiled a comprehensive tariff strategy aimed at several key trading partners, including China, the European Union, and Japan. He labeled the day as “Liberation Day,” emphasizing the need for the U.S. to protect its economic interests. The tariffs include a staggering 34% on Chinese goods, 20% on imports from the European Union, and 24% on Japanese products. Trump also highlighted India’s tariffs, which he claimed reach 52%, and announced a “discounted reciprocal tariff” of 26% for the U.S. in response. Additionally, a baseline tariff of 10% will apply to other nations, including Britain. This aggressive approach is intended to address what Trump described as unfair trade practices and currency manipulation by foreign nations.
Market Reactions and Economic Impact
The announcement of these tariffs sent shockwaves through global financial markets, leading to a significant decline in stock futures and bond yields. Following the press conference, the Dow Jones Industrial Average fell by 2.4%, while the Nasdaq and S&P 500 futures dropped by 4.2% and 3.5%, respectively. Technology companies, particularly those reliant on foreign manufacturing, faced sharp declines. Apple saw a 7.4% drop in after-hours trading, while Nvidia and TSMC fell by 5.2% and 5.9%, respectively. The clothing industry was also hit hard, with companies like Gap, Ralph Lauren, and Nike experiencing significant losses due to the new tariffs on Chinese and Vietnamese products.
Gold’s Safe Haven Appeal
As stock markets reacted negatively to the tariff announcements, gold emerged as a preferred investment for many traders. Spot gold prices increased by 0.4% to $3,145.93 an ounce after reaching a high of $3,167.57 earlier in the session. The surge in gold prices reflects a broader trend of investors seeking refuge in precious metals during times of economic uncertainty. The dollar also experienced a decline, depreciating over one percent against the euro shortly after Trump’s announcement. Additionally, Bitcoin fell by more than 3% in the wake of the tariff news. This environment of volatility underscores the potential for ongoing economic instability as the implications of the new tariffs unfold in the coming weeks.
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