Trump's tariffs trigger global market turmoil

Recently, global financial markets experienced severe declines due to the tariffs set forth by U.S. President Donald Trump, which took effect on April 2, 2025. The tariffs imposed a minimum 10% tax on all U.S. imports and were part of a broader strategy to address perceived trade imbalances with nearly 90 countries. Following this announcement, stock markets across Asia and Europe showcased significant drops with Japan’s Nikkei 225 index plummeting 7.8%, Hong Kong’s Hang Seng plunging 13.2%, and Germany's DAX index falling by 5.8%. Additionally, U.S. stock futures indicated further declines, leading to a collective $10 trillion loss in market value. Economists warned that the extensive tariffs could lead to a decrease in consumer spending and inflation spikes, negatively impacting economic growth. On April 8, 2025, there was a slight rebound in global markets, which saw some indices recover from their previous lows, but uncertainty continued to loom over the market as responses from other nations, particularly China, predicted an intensifying trade conflict. China's retaliatory measures included the implementation of a 34% tax on imports of U.S. products commencing April 10. Trump's administration maintained that tariffs are necessary to foster fair trade practices. However, this approach has sparked criticisms from various sectors, including investors who are now confronted with potential long-term economic repercussions across global markets as businesses reassess their strategies.