PSX crashes 3,300 points on Trump tariff shock

April 07, 2025 (MLN): Following a sharp selloff in international markets, the Pakistan equities also seen a dramatic fall as the benchmark KSE-100 plummeted to 115,488.18 by a staggering 3,303.48 points within the first thirty minutes of trading.

The sharp decline was triggered by concerns over U.S. President Donald Trump’s aggressive tariff policies, adding to global recession worries and geopolitical uncertainties.

Heavy selloffs across major sectors marked the day, as investor confidence crumbled in the wake of escalating risk-off sentiment.

Top losers include PSEL (-7.35%), KTML (-5.21%), NATF (-5.16%), PAEL (-5.16%), and PSO (-4.68%).

On the other hand, top gainers were FHAM (+1.91%), HINOON (+1.69%), NESTLE (+0.67%), BAHL (+0.52%), and TPLRF1 (-0.07%).

In terms of index-point contributions, companies that dragged the index lower were UBL (-255.58pts), OGDC (-219.83pts), MARI (-212.48pts), PPL (-184.21pts), and ENGROH (-137.01pts).

Sector-wise, KSE-100 Index was let down by Oil & Gas Exploration Companies (-668.83pts), Commercial Banks (-618.20pts), Cement (-248.05pts), Oil & Gas Marketing Companies (-173.21pts), and Power Generation & Distribution (-161.55pts).

Last week, the United States has significantly raised tariffs on Pakistani exports, increasing rates from 4-5% to 29% under its reciprocal trade policy.

President Donald Trump announced the move as part of a broader strategy to address trade imbalances with multiple countries.

Under the new policy, Pakistan will now face a 29% tariff, mirroring its 58% tariff on US goods, as cited by the administration.

The baseline 10% tariff will take effect on April 5, 2025, with additional rates applied to countries imposing higher trade barriers on American exports.

Internationally, equities fell sharply in response to Trump's Tariff announcements. 

Trump said foreign governments would have to pay "a lot of money" to lift sweeping tariffs that he characterized as "medicine," prompting further carnage in global financial markets.

Asian stocks fell sharply in early Monday trading, while U.S. stock market futures also dropped significantly.

Investors are worried that Trump's tariffs could drive up prices, weaken demand, hurt confidence, and even trigger a global recession.

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