#TrumpTariffs

Global markets were rocked after U.S. President Donald Trump announced sweeping new tariffs in early April 2025. Under the banner of “Liberation Day,” the U.S. imposed a 10% tariff on all imports, with harsher rates targeting specific regions—34% on Chinese goods and 20% on EU products. The news triggered a sharp global sell-off, wiping out over $3 trillion in market value. The Dow Jones dropped more than 1,600 points, while the S&P 500 and Japan’s Nikkei 225 also saw steep declines.

Sectors heavily reliant on global trade were hit hardest. UK private equity firms and Asia-facing banks saw stock losses of over 20%. Oil and commodity prices also slumped, dragging down energy giants like BP and Shell. Hedge funds reported substantial losses, with net leverage falling to near historic lows, indicating a shift toward cautious investing amid uncertainty.

The international response was swift. The EU and Canada announced retaliatory tariffs, while China condemned the U.S. move as a breach of WTO rules. Analysts warned that the escalation could tip the global economy into recession, with investors bracing for continued volatility. As markets reel, all eyes remain on potential negotiations—or further escalations—in what’s shaping up to be a major trade war.