Global Stock Markets Plunge Following Trump’s Tariff Measures, Marking Worst Decline in Decades

Global Stock Markets Plunge Following Trump’s Tariff Measures, Marking Worst Decline in Decades

Live Updates: Trump’s Tariff Strategy Triggers Historic Market Losses
U.S. President Donald Trump's sweeping tariffs on both allies and rivals have wiped out approximately $5 trillion in market value from S&P 500 firms by the end of Friday’s trading session — the largest two-day decline on record. Speaking on Sunday, Trump stated that foreign nations would have to pay significantly to lift the newly imposed tariffs. Despite the massive sell-off, he expressed little concern over the $6 trillion downturn in U.S. market value since the previous week, saying, “Sometimes, you have to take medicine to heal. We’ll be wealthier than ever.”

‘Liberation Day’ Tariffs Spark Market Chaos and Global Backlash
Trump’s announcement of sweeping tariffs on all trade partners led to immediate financial market volatility and drew sharp criticism worldwide. A blanket 10% tariff was introduced, with additional levies hitting certain countries more heavily. Trump remains firm, predicting the policy will yield “historic” benefits, despite growing unease among global corporations.

Market Fallout: Global Sell-Off Worsens Across Continents
Financial markets around the globe reacted violently to the new tariff regime. Wall Street saw a historic plunge, erasing $5 trillion from the S&P 500’s valuation by Friday. Oil and commodities also saw major drops, as investors rushed to safer assets like government bonds. Losses began in Asia and Europe and spread globally as the news broke.

Asia Hit Hardest as Tariffs Target Key Exporting Nations
On Monday, Asian markets experienced unprecedented losses not seen in decades. The Shanghai Composite dropped over 8%, Hong Kong’s Hang Seng plummeted 13.2%, and Japan’s Nikkei 225 fell 7.8%. Europe opened the week in negative territory as well, with sharp declines in banking and defense sectors. These moves followed Trump’s imposition of tariffs ranging from 10% to 46% across numerous countries.

Nations with significant exports to the U.S., such as Japan (26%), South Korea (26%), and Vietnam (46%), are especially affected. Trump described Vietnam as a major violator of trade fairness. Cambodia (49%), Thailand (36%), and China (54%) were also hit with steep tariffs. Even countries like Singapore, Australia, and New Zealand saw the 10% base rate take effect.

Economists Warn of Long-Term Damage
“Asia is shouldering a large share of the tariff burden,” said Qian Wang, Asia Pacific chief economist at Vanguard, who added that higher tariffs are likely here to stay. The region’s export-driven economies are particularly vulnerable to a potential slowdown in the U.S., which could ripple globally.

Holiday closures last week in some Asian markets delayed their reactions until Monday, intensifying the downturn. Taiwan’s market fell nearly 10%, its steepest drop on record. Australia’s ASX 200 dropped 4.2%, and South Korea’s Kospi slid 5.6%.

Recession Fears Rise as Analysts Adjust Forecasts
“Tariffs are feeding concerns around inflation and recession,” said Julia Lee from FTSE Russell. Goldman Sachs has raised the probability of a U.S. recession in the next year from 35% to 45%, while JPMorgan sees the risk as high as 60%.

The tariffs have hit export-reliant countries hard. Vietnam, for instance, is a manufacturing hub for major U.S. brands like Nike and Gap. Bangladesh, which exports over $8 billion in garments annually to the U.S., is now facing a 37% tariff.

Former U.S. Commerce official Frank Lavin noted, “Asia is disproportionately affected because it relies more heavily on U.S. demand than other regions.”

Markets Worldwide Continue to Sink
China’s retaliatory tariffs have added fuel to the fire, pushing global markets deeper into decline. All three major U.S. indexes fell more than 5% Friday, with the S&P 500 losing nearly 6% — the worst weekly performance since 2020. The UK’s FTSE 100 saw a 5% drop, its sharpest in five years, while German and French markets also posted significant losses.

Lee warned that the downturn may not be over, with U.S. futures signaling more pain ahead: “The global market sell-off is poised to continue.”

Since Trump announced the 10% global tariff, markets have lost trillions in value, with many countries — including major partners like China, the EU, and Vietnam — hit with even steeper rates.