U.S. equity markets experienced notable declines, particularly with General Motors shares plummeting 7.7% and Ford down 3.9%, as investors reacted to concerns over the potential impact of tariffs.

The situation is exacerbated by Trump's proposed 25% tariff on imported vehicles, which could add approximately $55 billion to vehicle costs, significantly affecting the automotive sector that saw U.S. auto imports total $220 billion last year.

Morgan Stanley has projected that these auto import tariffs could increase vehicle prices by over $90 billion across the industry, raising alarms for U.S. consumers who heavily depend on automobiles.

As the April 3 deadline for tariff implementation approaches, uncertainty surrounding these tariffs is causing analysts to lower expectations for U.S. corporate earnings.

In fact, analysts estimate that a 10% increase in tariffs could lead to a 5%-6% decline in U.S. earnings per share, prompting Barclays to revise its S&P 500 earnings estimate down to $262 from $271 for the year.

This mixed response in the currency markets reflects a complex relationship between the tariffs and global currency strength, influenced in part by a weakening U.S. dollar.

For instance, the Mexican peso fell by 1% and the Canadian dollar dropped by 0.3%, while currencies from other affected countries, such as the euro and South Korean won, demonstrated surprising strength against the U.S. dollar.

Amid these economic uncertainties, gold prices surged over 1% to a new high of $3,059 per ounce, driven by rising inflation concerns and geopolitical tensions, and maintaining resilience above its 200-day moving average since mid-October 2023.

Looking ahead, key economic indicators to monitor include Japan's March inflation data, U.S. PCE inflation for February, and UK retail sales for February, which could further influence market sentiment.