The tariffs have hit dozens of economies, representing the biggest disruption to global trade in decades.
Historic Trade Policy Shift Announced by Trump
President Donald Trump announced on April 2, 2025, that all imports would be subject to a 10% tariff, which would take effect on April 5, and that additional country-specific tariffs would take effect on April 9. The announcement sent shockwaves through the global economy, triggering the worst two-day loss in United States stock market history.
Trump’s 2025 tariffs effect Stock Market : Trillions Lost in Hours
Before markets closed for the weekend, $6.6 trillion in value was lost on Thursday and Friday alone.
Major Financial Indices Plunge Following Tariff Announcement
After a slight recovery on Tuesday, stocks fell once again on Wednesday as President Trump’s new tariffs on imports from dozens of countries took effect, including a steep 104 percent tariff on goods from China – dramatically escalating fears of a global trade war.
Trump’s 2025 Understanding Tariffs: Economic Consequences of Trade Barriers
What Are Tariffs and Why Are They Used?
A tariff is a tax imposed by the government on goods and services that are brought into the country by businesses. Although they are intended to safeguard local industries, tariffs frequently increase the cost of imported goods for consumers.
Measuring the Economic Toll of the Tariff Shock
Global Markets Suffer Multi-Trillion Dollar Losses
Bloomberg claims that the global equity value has been wiped out by losses on Thursday, Friday, and Monday, when three days of market losses occurred. That is more than the combined GDP of 150 nations and amounts to roughly 10% of the global economy.
S&P 500 Posts Historic Decline
Over the course of four days, the S&P 500, a stock market index that measures the performance of 500 of the largest publicly traded companies in the United States, experienced its greatest loss since the benchmark was established in the 1950s.
Bear Market Looms as Investor Confidence Shakes
It is now nearing a bear market, which is defined as 20 percent below its most recent high.
Trump’s 2025 tariffs react on Market which Close on April 8: A Snapshot
Index Performance After Tariff Enforcement
On market close on April 8:
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The S&P 500 closed down 79.48 points, or 1.6 percent, at 4,982.77
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The Dow fell 320.01 points, or 0.8%, to 37,645.59 at the close
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The Nasdaq closed down 335.35 points, or 2.2 percent, at 15,267.91
How Commodities and Crypto Reacted to Tariff Fears
Volatility Hits Gold, Oil, and Bitcoin
Aside from the stock market, the price of gold, crude oil and Bitcoin have all fallen over the past week amid rising uncertainty.
Gold’s Brief Surge and Sharp Fall
In times of uncertainty, gold is typically regarded as a safe asset. However, in recent months, demand has increased. The gold market initially surged following the tariff announcement, reaching a high of $3,167 per ounce. On the other hand, it fell by 2% on April 7 to $2,977 before slightly rising to $2,984 on Tuesday.
Oil Prices Plunge to Four-Year Lows
Oil prices plunged by 7 percent in response to the tariff announcement, followed by a further 2 percent drop on April 5. By Tuesday, oil had stabilised around $60 per barrel but has since dropped below $57, the lowest it has been since 2021.
Bitcoin Falls 30% Since Inauguration
Bitcoin, which was expected to flourish under the new government, has also slipped over the past week. The cryptocurrency has fallen by 30 percent since Trump’s inauguration on January 20, from $109,000 to today’s $77,000.
Trump’s 2025 tariffs disturb Currency Markets in Turmoil Across the Globe
Dollar Weakens; Yuan, Pound, and Rupee Struggle
Divergent responses have been provided by emerging market currencies and major trading partners of the United States.
Global Currency Performance Snapshot
According to Reuters:
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The US dollar weakened against major currencies including the yen and euro
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China’s yuan hit a 19-month low on Tuesday, caught in the crossfire of the trade tariff war
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Euro: Last up 0.1 percent at $1.09, down from an earlier rise of more than 0.7 percent
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British pound sterling: Lost about 1 percent over the past week
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Russian rouble: Declined from 84.2 to 86.1 per dollar
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Chinese yuan: Reference rate at 7.2038 yuan per dollar
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Indian rupee: Dropped 0.7 percent, closing at 86.44 per dollar
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Japanese yen: Strengthened, closing at 146.41 per dollar
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Brazilian real: Fell from 5.67 to 6.00 reais per dollar
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Mexican peso: Dropped from 20.34 to 20.89 per dollar
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South African rand: Down 4.4 percent to R19.75
Are We Headed for a Global Recession?
Economists Warn of Imminent Slowdown
A recession is a period of significant economic decline, typically defined as two consecutive quarters (six months) of negative growth in a country’s GDP.
Historical Recessions in Context
Since 1950, the US has experienced 11 recessions. Some of the most notable include:
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The oil crisis (1973–1975)
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Double-dip recession (1980–1982)
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Dot-com bubble (2001)
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Global financial crisis (2007–2009)
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COVID-19 recession (2020)
Analyst Forecasts: What Experts Are Saying
Analysts at JPMorgan have estimated a 60 percent likelihood of a recession, while Goldman Sachs and Morningstar put the odds between 40 and 50 percent.
