Global Turmoil as Trump’s Tariff Tsunami Sparks Trade War Fears
Nations across the globe are bracing for a trade war after President Donald Trump unveiled sweeping import tariffs, shaking markets and sparking global condemnation. The measures, which mark a major departure from decades of open trade policies, have triggered fears of a looming global recession and soaring consumer prices in the U.S.
Japan’s Prime Minister Shigeru Ishiba declared the move a “national emergency” as Tokyo’s stock exchange faced its steepest losses in years, led by banking stocks. Analysts at JP Morgan now forecast a 60% chance of a worldwide economic slump, up from 40%.
While Trump insists the tariffs strengthen U.S. bargaining power, confusion lingers over whether they are a negotiation tool or a permanent policy shift. Trump stated the levies give the U.S. “tremendous leverage,” contradicting senior officials who called them non-negotiable.
Markets plunged—Wall Street saw its worst drop since 2020. The Dow dipped 4%, the S&P 500 fell nearly 5%, and the Nasdaq slid 6%. Globally, Apple and Nike shares took a hit, and Japanese stocks faced their worst weekly fall in five years.
Trump’s tariffs include a 10% baseline on all imports and much steeper rates—up to 54%—on specific countries. Allies like Canada and Mexico brace for auto tariffs, while China and the EU prepare retaliatory actions. France even proposed freezing U.S. investments.
Critics warn the tariffs could fan inflation, weaken global alliances, and risk a U.S. downturn. Meanwhile, Trump maintains the policy will bolster domestic manufacturing and enhance national security.
Read Also: