Trump’s Tariffs Lead to Major Losses in Global Stock Markets and Economic Uncertainty
Washington, D.C.:The tariffs imposed by U.S. President Donald Trump have caused a massive plunge in the American stock markets, wiping out over $60 trillion in just two days. Trump had recently announced retaliatory tariffs on dozens of countries, including Pakistan, which has sent shockwaves through global trade.
The impact of Trump’s tariffs was felt worldwide, with no region escaping the ripple effects, not even remote, uninhabited islands near Antarctica, home to only penguins, where humans last visited a decade ago. According to U.S. media reports, the stock market losses after the tariff announcement amounted to more than $60 trillion in just two days, leaving investors in turmoil. Furthermore, there are concerns that Chinese products might now shift towards European markets due to the tariffs.
The announcement of the tariffs has led to the worst stock market decline in five years. The Dow Jones Industrial Average dropped by 5%, the S&P 500 fell by 4.6%, and the Nasdaq saw a decline of 4.7%. The global financial markets also took a significant hit, with the FTSE 100 Index on the London Stock Exchange seeing a record 5% drop since the COVID pandemic. Germany’s stock market shrank by 4%, and Japan’s market saw a decrease of 2.8%. As fears of a trade war escalated, oil prices plummeted by 8%, reaching their lowest point in four years.
U.S. Federal Reserve Chairman Jerome Powell has warned of rising prices and a slowdown in economic growth, yet despite President Trump’s insistence, Powell has refused to lower interest rates for the time being.
Meanwhile, IMF Managing Director Kristalina Georgieva stated that during a period of slow growth, Trump’s tariffs pose a significant risk to the global economy.
In addition, the Prime Ministers of the United Kingdom, Australia, and Italy have all voiced concerns that the ongoing trade war poses a major threat to global trade. They have agreed to work together to ensure economic stability in the face of growing trade tensions.
