 "US President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington. Reuters")
Global markets are in turmoil as Donald Trump’s trade war, marked by the imposition of tariffs on 60 nations, has wiped trillions off major companies’ values and raised fears of a recession in the United States.
His new tariffs have shaken the global trading system, causing a $2.5 trillion loss in the US stock market, according to a report from the Financial Times.
Experts warn that Trump’s steep border taxes, ranging from 10 per cent to 50 per cent, have increased the risk of a global downturn and a recession in the US.
Leaders from Brussels to Beijing criticised his actions. China called them “bullying,” whereas the EU is planning countermeasures.
Trump avoided addressing the tariffs during market hours, but as soon as markets opened, a stock bloodbath followed. Initially, Asian markets crashed, followed by similar declines across the globe.
The market sell-off, compared to crashes during the Covid pandemic and the 2008 financial crisis, hit exchanges worldwide. The UK’s FTSE 100 fell 133 points (1.5 per cent) to 8,474, its worst day since August.
In the US, all three major stock markets suffered their biggest drop since June 2020. The Nasdaq plunged 5.97 per cent, while the S&P 500 and Dow fell 4.8 per cent and 3.9 per cent, respectively. By midday, Apple and Nvidia lost a combined $470 billion in value.
Trump’s ‘Liberation Day’
President Donald Trump on Wednesday (local time) announced a series of significant tariffs, referring to the day as “Liberation Day." These measures include a universal 10% tariff on all imported goods, effective April 5, 2025, and additional country-specific tariffs targeting approximately 60 nations, set to begin on April 9, 2025.
Notable tariffs include 34 per cent on Chinese imports, 20 per cent on goods from the European Union, and 24 per cent on Japanese products.