Global stocks fell sharply and the US dollar hit a six-month low after US president Donald Trump unveiled sweeping tariffs against America’s global trade partners, in a move that is expected to upend supply chains and cause economic turmoil.

European markets opened lower on Thursday after a sharp selloff across Asia and US futures signalled similar falls when Wall Street opens.

In London, the FTSE 100 fell 1.3%, Germany’s Dax was down 1.6% and France’s CAC was off 1.8%.

It followed a major sell-off in Asia where trading partners were hit with some of the highest tariffs, beyond the baseline 10% applied to imports from all countries selling goods to the US.

Overnight, Japan’s Nikkei and Topix fell 3.3% and 3.5%, respectively, after Trump’s decision to apply a 24% tariff on the country. Hong Kong’s Hang Seng was down 1.9%, while the Vietnam stock marker – which was hit with 50% tariffs – tumbled 6.7%.

US futures also suffered, with the Dow futures pointing at losses of 2.1% and S&P 500 futures falling about 3%.

Futures for the tech-focused Nasdaq were the hardest hit of the three main markets, down 3.5%, with constituents such as Apple – which still has large exposure to China – plunging 7%. Nike took a similar dive of 7.3% while AI chip maker Nvidia dropped 5.6%, and Tesla tanked more than 8%.

The dollar was down 1.1% against a basket of foreign currencies, including the pound which was up more than a cent or 0.9% at just above $1.31.

Adam Hetts, a portfolio manager at Janus Henderson Investors, warned that markets were unlikely to calm down anytime soon.

“Eye-watering tariffs on a country-by-country basis scream ‘negotiation tactic’, which will keep markets on edge for the foreseeable future. Fortunately, this means there’s substantial room for lower tariffs from here, albeit with a 10% baseline in place.

“We’ve seen the administration have a surprisingly high tolerance for market pain, now the big question is how much tolerance it has for true economic pain as negotiations unfold,” Hetts added.

Oil prices also fell, with a barrel of Brent crude down 3.3% at$72.50 amid fears that sweeping tariffs would trigger a global recession, dampening energy demand.

Meanwhile, investors flocked to so-called safe-haven assets such as gold, pushing prices to a new record high of $3167.50 overnight.

“The tariff rates unveiled this morning far exceed baseline expectations, and if they aren’t negotiated down promptly, expectations for a recession in the US will rise dramatically,” IG market analyst Tony Sycamore said.