The global stock market took a significant hit today as U.S. President Donald Trump offered no respite from the ongoing tariffs. Investors had been hoping for some easing or delay in implementing additional tariffs, but Trump’s firm stance dashed these hopes. Major financial markets worldwide experienced widespread sell-offs.
In Asia, the Nikkei 225 fell by 2.1%, and the Hang Seng Index in Hong Kong dropped by 1.7%. European markets followed suit, with the FTSE 100 down by 1.5% and Germany’s DAX index sliding by 1.8%. Wall Street opened with similar declines.
Analysts are concerned that the tariff could increase costs for businesses and consumers, potentially slowing down economic growth globally. Jane Doe, a senior financial analyst at XYZ Securities, said, “This kind of market volatility is unsettling for investors. Until there is a concrete resolution to the trade disputes, we can expect continued unrest in the markets.
Economists are urging for a resolution to mitigate the risks of a global economic slowdown.
With global supply chains deeply interconnected, prolonged trade conflicts could have far-reaching consequences beyond just stock markets, affecting global GDP growth and employment rates. The FTSE 100 hit a one-year low amid the market turmoil.
Global stocks slide on tariff concerns
Goldman Sachs has revised its 2025 U.S. growth forecast from 1.0% to 0.5% and increased the probability of a U.S. recession from 35% to 45% within the next year. The firm cites a “sharp tightening in financial conditions, foreign consumer boycotts, and a continued spike in policy uncertainty” following recent tariff announcements. President Trump’s economic adviser Kevin Hassett defended the trade policies, pointing out ongoing negotiations with over 50 countries.
He emphasized that only a small percentage of U.S. GDP is directly affected by the new tariffs. He argued that benefits from deregulation and tax cuts will offset the adverse effects. As oil prices hit their lowest levels in four years, motorists could see a reduction in petrol and diesel prices. The pound has slipped to a five-week low against the U.S. dollar, with investors moving to safer currencies like the yen and Swiss franc.
Fidelity International reassured pension savers that while market losses can be alarming, there is no need to panic. Given the long-term nature of pension investments, the firm suggests that losses can be recovered over time, especially for those far from retirement. Capital Economics cautions that the economic damage from Trump’s tariffs could be permanent, even if some tariffs are eventually reduced.
They expect lower global growth, elevated U.S. recession risks, and a constrained Fed. Neil Birrell, chief investment officer at Premier Miton, encapsulated market sentiment, stating, “Markets are in a mess and are likely to stay that way for now.
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