Trump's Trade War: Is This the Beginning of a Global Economic Collapse?

2025-04-08 00:00:16.624

Extreme volatility rocked global stock markets on Monday, triggered by Donald Trump's controversial new tariffs. The sell-off began in Asia, spread to Europe, and hit the US hard, with the S&P 500 briefly entering bear market territory before a dramatic reversal. While a potential 90-day tariff pause on all countries except China offered fleeting relief, Trump later threatened further tariffs on China, intensifying market pressure. The S&P 500 closed down 0.2%, and the Dow Jones fell 0.9%. London's FTSE 100 plummeted 4.38%, its lowest close in over a year, while Tokyo's Nikkei 225 slumped 7.8%. Other major European indices also suffered significant losses. Trump defended his actions, comparing the tariffs to 'medicine' needed to fix the economy, while ignoring the widespread concerns. High-profile figures like Larry Fink (BlackRock CEO), Jamie Dimon (JPMorgan Chase CEO), Bill Ackman, and even Elon Musk expressed alarm, with Dimon warning of increased inflation and slower growth. The technology-focused Nasdaq Composite experienced similar volatility, ending the day nearly flat. Oil prices also dropped to four-year lows. Amidst the turmoil, criticism mounted, with Sir Richard Branson calling the situation a 'colossal mistake' with potentially catastrophic consequences.