Washington, D.C. – Stock markets worldwide plummeted on Thursday following U.S. President Donald Trump’s announcement of aggressive new tariffs targeting trading partners across the globe, sparking what analysts are calling a historic global trade war. The move, unveiled in a Rose Garden speech on Wednesday, sent shockwaves through financial hubs from Asia to Europe, with U.S. markets bracing for a turbulent opening.
In Asia, Japan’s Nikkei 225 closed 2.8% lower, while Hong Kong’s Hang Seng Index dropped 1.5%. South Korea’s Kospi saw a milder decline of less than 1%. Europe faced steeper losses, with the Stoxx 600 index down 2% by 6:45 a.m. ET. France’s CAC fell 2.5%, Germany’s DAX shed over 2%, and London’s FTSE 100 declined 1.5%. In the U.S., futures signaled a rough day ahead: Dow futures sank 2.8%, S&P 500 futures dropped 3.4%, and the Nasdaq was poised to open 3.8% lower.
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Trump dubbed the tariff rollout “Liberation Day,” framing it as a bold step to protect American interests. However, critics swiftly rebuked the policy. Bernd Lange, chair of the European Parliament’s International Trade Committee, speaking at a news conference in Strasbourg, France, on Thursday, branded it “Inflation Day.” “These tariffs will increase prices in the United States and around the globe,” Lange warned, calling the move a “mess” that unfairly burdens producers in the U.S., Europe, and the Global South. “It will really harm people on the ground,” he added.
The tariffs’ full scope and long-term effects remain under scrutiny as markets reel and experts unpack their implications. With global economies now on edge, the stage is set for a contentious new chapter in international trade relations. Have questions about what this means? Let us know, and we’ll address them here.
Key Points: Trump Launches Historic Global Trade War
- Tariff Announcement: U.S. President Donald Trump unveiled new tariffs on global trading partners, triggering a historic trade war, announced on Wednesday from the White House Rose Garden.
- Market Declines: Asia-Pacific markets fell—Japan’s Nikkei 225 down 2.8%, Hong Kong’s Hang Seng 1.5%, South Korea’s Kospi under 1%. Europe’s Stoxx 600 dropped 2%, with France’s CAC at 2.5% and Germany’s DAX over 2%.
- U.S. Impact: U.S. stock futures signaled a sharp decline—Dow futures down 2.8%, S&P 500 futures 3.4%, and Nasdaq futures 3.8% lower—foreshadowing a tough market opening.
- Trump’s Stance: Trump called it “Liberation Day,” claiming the tariffs protect American interests.
- Criticism: Bernd Lange, European Parliament trade chair, labeled it “Inflation Day,” warning of rising global prices and harm to producers in the U.S., Europe, and the Global South.
- Global Fallout: The tariffs are seen as unfair and disruptive, with potential to escalate economic tensions worldwide.
