US: Trump’s tariff war fears recession in global market, massive selling in Wall Street
New Delhi| The decline in stock markets all over the world including America continues. After US President Donald Trump’s announcement of imposing reciprocal tariffs on all countries, apprehensions continue in the stock markets all over the world and now the fear of recession in the global markets has deepened. Investors fear that Trump’s imposition of tariffs on Mexico, Canada and China could lead to trade policy fluctuations and shock consumer demand and corporate investment.
The Nasdaq in New York saw its biggest decline since the year 2022. At the same time the S & P 500, which tracks America’s largest companies, has also fallen to eight percent since reaching its highest level in February. Even though President Trump has not said anything yet regarding the ongoing turmoil in the market, Trump administration officials and advisors are busy calming the fears of investors.
Down by more than 1,000 points in Dow Jones
US stock markets fell sharply on Monday as economic concerns in the US rise and President Trump did not rule out a recession. Investors are worried that Trump’s aggressive trade policies could lead to a recession. After falling more than 1,000 points in afternoon trading, the Dow Jones Industrial Average closed at 41,912, down 890 points, or 2.1%.
The U.S. trade war with China heated up further on Monday, when Beijing began imposing retaliatory tariffs on U.S. agricultural products for which China is the largest market. This includes a 15% duty on American chicken, wheat, and corn, as well as a 10% tax on soybeans, pork, beef, and fruits. Ontario, Canada’s most populous province, also said Monday it was adding a 25% surcharge on all electricity exports to the U.S., part of the U.S. response to White House tariffs on Canadian products.
Nasdaq got a shock
The S&P 500 fell 2.7%, or 187 points, to 5,615, the worst day this year, as well as the lowest level since September. S&P fell 3.1% last week, its worst weekly performance since September. The tech-dominated Nasdaq suffered an even bigger blow, with the Nasdaq falling 728 points, or 4%, after improving last week. Tesla shares fell more than 15%, and Alphabet, Apple and Nvidia also fell about 5%.
Slowing growth
Goldman Sachs said it was reducing its economic growth forecast for 2025, previously 2.4%, to 1.7%, as it faces more headwinds due to the Trump administration’s trade policies.
