Global stocks continued to plunge Monday after President Trump announced new “reciprocal” tariffs last week — sparking fear on Wall Street and abroad that the increased levies could cause a global economic slowdown.
Countries are now scrambling to respond to Trump’s tariffs, with China and others promptly retaliating as the markets took a nosedive on Thursday and Friday.
Both Asian and European shares saw dramatic losses and hit lows the markets haven’t seen in years.
President Trump talks to members of the press aboard Air Force One during a flight to Joint Base Andrews, Maryland, on April 6, 2025. REUTERS
The Nasdaq Composite, S&P 500 and Dow Jones Industrial Average at market close on April 7, 2025. Mike Guillen/NY Post DesignIn Hong Kong, the Hang Seng Index closed more than 13% lower than its worst single trading day since 1997, according to the index’s list of the biggest historic losses. Meanwhile, in mainland China, both the blue-chip CSI300 index and Shanghai Composite Index closed about 7% lower.
Even so, China’s Foreign Affairs spokesperson Lin Jian warned, “Pressure and threats are not the way to deal with China. China will firmly safeguard its legitimate rights and interests.”
Japan’s Nikkei sank 7.8%, hitting lows last seen in late 2023, South Korea’s KS11 dropped 5% and India’s Nifty 50 sank 4%.
Pain was also inflicted on European markets, with the broad Stoxx 600 down 5.3 and Germany’s Dax down 9.4%.
A screen displays the stock indices at the Dubai Financial Market (DFM) stock exchange in Dubai on April 7, 2025. AFP via Getty ImagesRecent market darlings were especially hurt as investors have been forced to sell what they own. Meanwhile, defense stocks dropped 11.5%, with Rheinmetall down 21%.
The European banks index shed 4.8%, and is down 20% from its recent closing high.
A man walks past a screen showing Chinese stock market movements in Beijing on April 7, 2025. AFP via Getty ImagesGermany’s economic minister, Robert Habaeck, on Monday called Trump’s tariffs “nonsense,” but said Europe was in a better position than the US to handle the pain.
He said that means “being clear that we are in a strong position — America is in a position of weakness.” He argued that “we don’t have time pressure now,” but the US does.
Meanwhile, at home, investors thought the loss of trillions of dollars in wealth and the likely body blow to the economy would make Trump reconsider his tariffs.
At the start of the new trading week, the German share index (Dax) plummeted by around ten percent. dpa/picture alliance via Getty I
A man walks past an electronic sign board showing the closing price of the Heng Seng Index in Hong Kong on April 7, 2025 AFP via Getty Images“The size and disruptive impact of US trade policies, if sustained, would be sufficient to tip a still healthy US and global expansion into recession,” said Bruce Kasman, head of economics at JPMorgan, putting the risk of a downturn at 60%.
“We continue to expect a first Fed easing in June,” he added. “However, we now think the Committee cuts at every meeting through January, bringing the top of the funds rate target range down to 3.0%.”
S&P 500 futures slid nearly 5% in volatile trade, while Nasdaq futures dived 5.7%, adding to last week’s almost $6 trillion in market losses.
The S&P 500, Wall Street’s main barometer of health, was flirting with bear market territory Monday afternoon, trading 18.4% below the all-time high it set on Feb. 19.
A bear market is a term used by Wall Street when an index such as the S&P 500 or the Dow Jones Industrial Average has fallen 20% or more from a recent high for a sustained period of time.
With Post wires
