Global Markets Plummet as Trump Insists on Tariffs
FTSE 100 hits one-year low amid global sell-off triggered by U.S. tariffs
Global financial markets have experienced a sharp decline following U.S. President Donald Trump's affirmation of his controversial tariff policies.
The London Stock Exchange's FTSE 100 index fell approximately 5% at the start of trading on Monday, marking its lowest point in a year.
This downward trend was part of a broader market crash that affected various European indices, including Germany's DAX, which dropped by about 6.5%, and France’s CAC 40, which fell approximately 5.3%.
In Asia, stock indices reacted negatively as well, with Japan’s Nikkei 225 plunging by 6.3% and Hong Kong’s Hang Seng witnessing a significant decline of 9.8%.
The tumbling values were exacerbated by the announcement of a new set of tariffs, with U.S. customs agents starting to enforce a 10% tariff on a range of imports this past weekend, with reciprocal tariffs set to rise substantially in the coming days.
President Trump, in comments aboard Air Force One, characterized his tariff policy as necessary, likening it to 'medicine' for the economy.
He asserted that he had engaged in discussions with several international leaders who were looking to persuade him to reduce these tariffs, which could be as high as 50% on certain products.
Meanwhile, economic analysts have begun to compare the tariffs' potential fallout to historical market crashes, with estimates indicating a potential 0.3% decline in U.S. GDP this fiscal year, a substantial reduction from previous growth forecasts.
The repercussions of the tariffs extend beyond U.S. borders, as Goldman Sachs projected a 0.7% reduction in GDP growth for China due to these trade policies.
The overall risk of a global recession is now viewed critically, assessed at between 45% to 60% by major Wall Street banks.
Jaguar Land Rover has announced a temporary halt on shipments to the United States, aligning with the implementation of the new tariffs, which notably include a 25% levy on all foreign cars.
In response to the worsening economic climate, British Transport Secretary Heidi Alexander criticized the tariffs, indicating that they negatively impact demand, prices, and consumers.
As global markets brace for more upheaval, U.S. stocks also reflected the turmoil, with futures for major indices such as the Dow Jones and S&P 500 indicating further losses in pre-market trading.
The situation is prompting investors to reconsider their strategies in light of a potential economic downturn, leading to significant sell-offs across various sectors.
In light of the tariffs, nations including Taiwan and India have offered to engage in discussions with the U.S. to explore potential trade agreements.
Taiwan's President proposed zero tariffs as a starting point for negotiations, while Indian officials noted their non-retaliatory stance in hopes of reaching a deal with Washington.
The evolving situation continues to unfold as international leaders assess their responses amid fears of an escalating trade war.
The London Stock Exchange's FTSE 100 index fell approximately 5% at the start of trading on Monday, marking its lowest point in a year.
This downward trend was part of a broader market crash that affected various European indices, including Germany's DAX, which dropped by about 6.5%, and France’s CAC 40, which fell approximately 5.3%.
In Asia, stock indices reacted negatively as well, with Japan’s Nikkei 225 plunging by 6.3% and Hong Kong’s Hang Seng witnessing a significant decline of 9.8%.
The tumbling values were exacerbated by the announcement of a new set of tariffs, with U.S. customs agents starting to enforce a 10% tariff on a range of imports this past weekend, with reciprocal tariffs set to rise substantially in the coming days.
President Trump, in comments aboard Air Force One, characterized his tariff policy as necessary, likening it to 'medicine' for the economy.
He asserted that he had engaged in discussions with several international leaders who were looking to persuade him to reduce these tariffs, which could be as high as 50% on certain products.
Meanwhile, economic analysts have begun to compare the tariffs' potential fallout to historical market crashes, with estimates indicating a potential 0.3% decline in U.S. GDP this fiscal year, a substantial reduction from previous growth forecasts.
The repercussions of the tariffs extend beyond U.S. borders, as Goldman Sachs projected a 0.7% reduction in GDP growth for China due to these trade policies.
The overall risk of a global recession is now viewed critically, assessed at between 45% to 60% by major Wall Street banks.
Jaguar Land Rover has announced a temporary halt on shipments to the United States, aligning with the implementation of the new tariffs, which notably include a 25% levy on all foreign cars.
In response to the worsening economic climate, British Transport Secretary Heidi Alexander criticized the tariffs, indicating that they negatively impact demand, prices, and consumers.
As global markets brace for more upheaval, U.S. stocks also reflected the turmoil, with futures for major indices such as the Dow Jones and S&P 500 indicating further losses in pre-market trading.
The situation is prompting investors to reconsider their strategies in light of a potential economic downturn, leading to significant sell-offs across various sectors.
In light of the tariffs, nations including Taiwan and India have offered to engage in discussions with the U.S. to explore potential trade agreements.
Taiwan's President proposed zero tariffs as a starting point for negotiations, while Indian officials noted their non-retaliatory stance in hopes of reaching a deal with Washington.
The evolving situation continues to unfold as international leaders assess their responses amid fears of an escalating trade war.
