President Trump’s New Tariffs on 90 Countries Ignite Fears of Global Trade War, Triggering Market Turmoil

President Trump announced on Wednesday the implementation of new tariffs on imports from approximately 90 countries. These tariffs include a universal 10% tax on all imports to the United States, with additional specific reciprocal tariffs applied to certain nations. While some countries will only be subject to the baseline 10% tariff, others will face higher levies. This move has sparked concerns about an impending global trade war, as the U.S. expands its list of countries subject to these tariffs, potentially impacting economic growth and causing fluctuations in stock markets worldwide.

The announcement has already affected various international relationships, with countries like Australia facing the standard 10% tariff. However, other nations, including China, are subject to higher tariffs, which has contributed to economic uncertainty on a global scale. President Trump referred to the day of the announcement as “Liberation Day,” emphasizing the need for these tariffs to address the trade deficit between the U.S. and countries such as China and the European Union.

The financial markets have reacted negatively to the news, with the Russell 2000 index, which monitors smaller U.S. companies, experiencing a significant drop of 4.7%. Additionally, the S&P 500 index, which includes 500 leading U.S. companies, has decreased by nearly 15% from its peak. European stock markets are also showing signs of distress, with a 10% decline from recent highs, indicating a potential correction.

The situation has led to a turbulent period for global markets, with Thursday marking the S&P 500’s worst day since the early stages of the Covid pandemic. As the implications of these tariffs continue to unfold, investors and economists alike are closely monitoring the situation to assess the potential long-term impacts on international trade and economic stability.