Global stock markets have been experiencing a significant crash due to the recent announcement of trade tariffs by US President Trump. Following Trump’s decision, markets across Asia and Europe experienced mayhem reminiscent of past crashes. Trump has doubled down on his stance, claiming that there is no inflation despite warnings from experts of a high risk of recession. Trump’s trade war with China has escalated, with Beijing retaliating by announcing new 34% tariffs on US imports starting April 10. In response, Trump accused China of playing it wrong and exploiting the US for decades.
Alongside the economic turmoil, the panic caused by the trade tariffs has led to significant drops in European and Asian stock markets. Paris, London, Amsterdam, Oslo, Milan, and other stock markets in Europe all experienced losses, with panic selling dominating early trading sessions in Asian markets as well. The Bombay Stock Exchange in India also witnessed a crash, with the Sensex and Nifty experiencing significant drops.
Despite the economic uncertainty, Trump has continued to insist on cutting interest rates to stimulate the economy. US Federal Reserve Chair Jerome Powell, however, warned that the tariffs will likely lead to higher inflation and slower growth, with an elevated risk of high unemployment. Powell emphasized that it was too soon to consider changes to monetary policy. Reports indicate that Powell and the Federal Reserve are in no rush to cut interest rates, despite Trump’s pressure to do so. The global markets remain volatile as the trade war between the US and China continues to escalate.
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