Bloodbath at Wallstreet
- S&P 500 drops 4.8%, Nasdaq plunges 6%, and Dow Jones falls 4%—the worst single-day loss since 2020.
- Trump imposes sweeping tariffs, including 10% duties on all imports and higher rates on China, the EU, and Japan.
- Global leaders react with countermeasures, with Canada imposing retaliatory tariffs on US goods.
- The IMF and WTO warn of severe economic consequences, while gold prices surge amid market uncertainty.
Wall Street Crashes as Global Markets React to Trump’s Tariffs
Financial markets took a severe hit on Thursday after President Donald Trump unveiled a new wave of tariffs, triggering a global sell-off. The S&P 500 recorded its biggest single-day drop since 2020, plunging 4.8%, while the Nasdaq fell 6% and the Dow Jones lost 4%.
The stock market turmoil came after Trump announced 10% tariffs on all imports, with even higher duties on China (34%), the European Union (20%), and Japan (24%). The measures aim to reduce US reliance on foreign manufacturing, but they have sparked concerns over a global economic slowdown.
International Response: Retaliation and Negotiations
Governments around the world reacted with strong opposition, with some nations threatening countermeasures. China demanded an immediate cancellation of the tariffs, while France and Germany hinted at retaliatory actions against US tech firms. Canadian officials announced a matching 25% tariff on American imports, affecting automakers like Stellantis, Jeep, and Chrysler.
European leaders, including French President Emmanuel Macron, urged caution, with Macron calling for suspending new investments in the US until the situation is clarified. Meanwhile, the EU and China opened channels for negotiation, but Trump insisted this was not up for discussion.
Economic Concerns and Market Reactions
Global financial institutions have raised serious concerns over the economic impact of Trump’s aggressive trade policies:
- IMF chief Kristalina Georgieva warned that the tariffs pose a “significant risk to the global outlook” at a time of sluggish growth.
- The World Trade Organization (WTO) projected a 1% contraction in global trade volumes this year due to increased restrictions.
- Gold prices hit a new record high, as investors sought safe-haven assets amid market uncertainty.
Trump’s Justification and Market Outlook
Despite the stock market crash, Trump remained confident in his trade strategy, dismissing concerns by saying:
“The economy was sick, and this is an operation. It’s going to boom.”
Commerce Secretary Howard Lutnick urged Americans to trust Trump’s vision, claiming “You can’t fight the United States—we are the sumo wrestler of the world.”
However, Republican leaders like Mitch McConnell opposed the tariffs, warning that long-term US prosperity requires cooperation, not economic isolationism.
What’s Next?
The global markets remain on edge as Trump’s tariffs take effect. The 10% baseline tariffs will begin on Saturday, while the higher levies on China, the EU, and Japan will go into force on April 9. Investors will be closely watching for further countermeasures and trade negotiations in the coming days.
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