On April 1, investors around the world woke up to an extraordinary financial meltdown. Screens in the Tokyo and New York stock exchanges turned blood red, and European markets trembled as if they were experiencing another Black Monday. Timeline: How did Trump's tariffs shake the world's stock markets? And will the tremors be repeated?
A red "Make America Great Again" hat, associated with US President Donald Trump, hangs on the trading floor of the New York Stock Exchange. In the background, screens displaying financial market data are predominantly red, potentially indicating a decline in stocks. The image highlights the symbolic intersection between politics and US financial markets.
On the morning of Monday, April 1, investors around the world woke up to the sound of an extraordinary financial meltdown. Screens on the Tokyo and New York stock exchanges turned blood red, and European markets trembled as if they were experiencing another Black Monday.
Within hours, trillions of dollars worth of stocks were wiped out, and the fortunes of the world's super-rich were decimated. The reason? A series of tweets and surprise tariff decisions by US President Donald Trump ignited a frantic global trade war, sending markets on a rollercoaster ride from panic to recovery in one unforgettable week.
This wasn't just a normal market correction; it was more like a perfect storm where all the bad elements converged at once. Trump's erratic decisions pushed investors to the brink of mass panic, with some comparing what was happening to historical crises like Black Monday in 1987, the 2008 financial crisis, and the 2020 pandemic collapses. In this narrative investigation, we take you through a timeline of the events of that dramatic week, day by day, to understand how a presidential tweet became an earthquake that shook global financial markets. And where might this historical precedent lead us?
Sequence of events: A week of chaos in the markets
Wednesday, April 2, 2025: Donald Trump threw his first stone into the global trade pool by announcing a 10% tariff on all imports into the United States from all countries. Not content with that, he also threatened "special" tariffs of up to 50% on imports from some "unfriendly" countries.
The announcement, at 3:00 p.m. New York time, came as a thunderbolt to Wall Street. As soon as the news broke, US indices began to decline in the final minutes of trading. The S&P 500 closed significantly lower that day as investors realized a full-blown trade war was looming, while trading rooms were in a state of disbelief and bewilderment.
The world is beginning to anticipate and monitor the US President's calculations...and the constant question is: What's next?!
Thursday, April 3, 2025: Panic only needed one night to brew. Asian and European markets awoke to a frenzied sell-off, continuing Wall Street's negative reaction. By the close of US markets that day, the S&P 500 had lost nearly 10% of its value in just two days, the largest 48-hour drop since the index's inception in the 1950s.
That Black Thursday saw a massive sell-off in stocks as investor confidence plummeted. Everyone realized that Trump was serious about igniting a global trade war, and that retaliation was inevitable. While traders stared at their screens in disbelief, the world's largest companies saw billions of dollars in market value wiped out in mere hours.
Friday, April 4, 2025: China's response was swift and harsh. As US markets reopened, Beijing announced a 34% tariff on all US goods. This move marked a fierce escalation that raised fears of a trade war escalating to unprecedented levels. US indices tumbled again; the Dow Jones Industrial Average fell by more than 2,000 additional points today, or about -5%, and the Nasdaq fell by about -6%, officially entering bear market territory.
This massive sell-off wiped out over $5 trillion in market value from global companies in just two sessions.
Billionaires were among the biggest losers: Elon Musk lost about $30.9 billion in the past few days, Jeff Bezos saw about $23.5 billion of his fortune evaporate, and Mark Zuckerberg's net worth fell by about $27.3 billion. A total of more than $81 billion was lost by just three of the world's richest people in the bloody 48 hours, according to the Bloomberg Billionaires Index.
These shocking figures represent the largest two-day drain on the wealth of the world's 500 richest people in modern history. Some investors have described the situation as a "nuclear economic winter" hitting the financial system, and billionaire Bill Ackman (a Trump supporter) warned in a post on the X platform of an impending catastrophe if this spiral of tariffs continues.
Amid this storm, signs of political rebellion have begun to emerge in Washington. Republicans in Congress have begun to propose bills to restrict Trump's tariff powers, having witnessed firsthand how the nation's stock exchanges have become a battleground because of his tweets.
Saturday, April 5 and Sunday, April 6, 2025: The weekend did not bring the expected respite. While stock markets were closed, the repercussions of the crisis continued on other fronts. The European Union held emergency meetings and agreed on a plan to impose counter-tariffs targeting €21 billion worth of US products—commodities carefully selected to hurt politically sensitive sectors in the US, such as soybeans and agricultural products.
In Asia, China vowed further escalation and raised its rhetoric, even warning its citizens of the dangers of traveling to the United States amid rising tensions.
US futures markets didn't wait until Monday morning; Wall Street futures fell nearly 4% Sunday evening as electronic trading opened, signaling a tough Monday ahead. Even safe-haven bond markets weren't spared, with government bonds in emerging economies experiencing forced sell-offs, with dollar-denominated bond prices for countries like Pakistan and Egypt plummeting to dangerous levels, threatening default.
The specter of a full-blown financial crisis loomed over the weekend, with voices warning that Trump was leading the global economy to the brink of collapse.
Monday, April 7, 2025: "Black Monday" was worse than expected. Asian and European markets collapsed at the opening: the Hang Seng Index fell 12%, and the Nikkei 225 fell 8%. The German DAX lost 9%, while the European STOXX 600 closed down 4%, its biggest loss since March 2020.
On Wall Street, panic selling took hold at the opening, with the S&P 500 index falling 7%, approaching a bear market. Liquidations swept the market, with even major stocks like Apple falling more than 10%. Oil prices fell to their lowest levels in four years, and gold fell more than 2%.
Trump defended his policy, saying the United States would make billions from the tariffs and urging investors to remain calm, arguing that the time was "perfect to buy." But the market shrugged off his remarks amid reports of pressure from some 70 countries seeking exemptions from the tariffs, and his advisors' fears of a full-blown financial collapse.
Despite rumors of the White House's intention to make concessions, US markets closed the day with fresh losses, capping four days of unprecedented declines for global stock markets.
Tuesday, April 8, 2025: Markets finally caught their breath, and signs of cautious stabilization emerged on this day, the day after the major crash. Many traders took a step back and reassessed the situation: should they continue selling and fleeing the market, or has bottom truly been reached?
News from Washington offered a glimmer of cautious optimism. In Congress, efforts accelerated among both Republicans and Democrats to curb the trade war, with calls for Trump to halt the madness before it's too late. The White House, for its part, issued veiled hints of its openness to dialogue with trading partners.
Although Trump himself remained defiant on the surface—reiterating via Truth Social his assertion that “the American economy is too strong to be shaken” and that the tariffs would deliver long-term benefits—his rhetoric was less inflammatory than before.
Markets picked up on these signals, and a technical recovery began: US indices registered slight gains on Tuesday, with some short positions being covered, and price volatility abated relatively. But this calm was more like the final storm before the final storm; everyone was waiting for a decisive decision from Trump that could turn the tide. Indeed, behind the White House doors, a tactical pullback scenario was being prepared under pressure from the president's financial advisors and pleas from major investors to save the market.
The world was cautiously awaiting Wednesday: Will Trump surprise everyone with a calming move, or will he continue his stubbornness?
Wednesday, April 9, 2025: The day marked the height of escalation and an abrupt end. This morning, China responded to the US's 104% tariffs by raising its own to 84% effective Thursday, declaring a "fight to the end." The trade war seemed to be spiraling out of control... until the US coup came in the afternoon.
In an unexpected move, Trump announced a 90-day suspension of tariffs on more than 75 countries, marking a temporary truce with the exception of China, which saw tariffs raised to 125% in response to its "disrespect for world markets," according to Trump.
This sudden decline ignited the markets: US indices jumped sharply, with the S&P 500 rising 7% and the Nasdaq 100 rising more than 9%. Apple stock jumped 13%, oil rose 4%, and Bitcoin surged by more than $5,000. Gold retreated slightly as risk appetite returned.
Markets were overjoyed, with Trump commenting, "It's time to get back to business!" But despite the breakthrough, tensions with China remained, while other countries temporarily caught their breath with the truce.
A market held hostage by tweets... or an exception that will not be repeated?
In conclusion, this turbulent week has witnessed an unprecedented, vivid example of the politicization of financial markets and their violent response to a tweet or a decision issued by the highest authority.
It's hard to overstate the lessons of this story: global stock markets nearly collapsed due to tweets and impulsive political decisions, before a counter-tweet and a last-minute tactical retreat saved them.
Markets may have breathed a temporary sigh of relief, but a fundamental question remains: Was this a rare exception that will not be repeated, or are we truly living in an era of politicized stock markets driven by tweets and political decisions?
That Black Thursday saw a massive sell-off in stocks as investor confidence plummeted. Everyone realized that Trump was serious about igniting a global trade war, and that retaliation was inevitable. While traders stared at their screens in disbelief, the world's largest companies saw billions of dollars in market value wiped out in mere hours.
Friday, April 4, 2025: China's response was swift and harsh. As US markets reopened, Beijing announced a 34% tariff on all US goods. This move marked a fierce escalation that raised fears of a trade war escalating to unprecedented levels. US indices tumbled again; the Dow Jones Industrial Average fell by more than 2,000 additional points today, or about -5%, and the Nasdaq fell by about -6%, officially entering bear market territory.
This massive sell-off wiped out over $5 trillion in market value from global companies in just two sessions.
Billionaires were among the biggest losers: Elon Musk lost about $30.9 billion in the past few days, Jeff Bezos saw about $23.5 billion of his fortune evaporate, and Mark Zuckerberg's net worth fell by about $27.3 billion. A total of more than $81 billion was lost by just three of the world's richest people in the bloody 48 hours, according to the Bloomberg Index.
These shocking figures represent the largest two-day drain on the wealth of the world's 500 richest people in modern history. Some investors have described the situation as a "nuclear economic winter" hitting the financial system, and billionaire Bill Ackman (a Trump supporter) warned in a post on the X platform of an impending catastrophe if this spiral of tariffs continues.
Amid this storm, signs of political rebellion have begun to emerge in Washington. Republicans in Congress have begun to propose bills to restrict Trump's tariff powers, having witnessed firsthand how the nation's stock exchanges have become a battleground because of his tweets.
Saturday, April 5 and Sunday, April 6, 2025: The weekend did not bring the expected respite. While stock markets were closed, the repercussions of the crisis continued on other fronts. The European Union held emergency meetings and agreed on a plan to impose counter-tariffs targeting €21 billion worth of US products—commodities carefully selected to hurt politically sensitive sectors in the US, such as soybeans and agricultural products.
In Asia, China vowed further escalation and raised its rhetoric, even warning its citizens of the dangers of traveling to the United States amid rising tensions.
US futures markets didn't wait until Monday morning; Wall Street futures fell nearly 4% Sunday evening as electronic trading opened, signaling a tough Monday ahead. Even safe-haven bond markets weren't spared, with government bonds in emerging economies experiencing forced sell-offs, with dollar-denominated bond prices for countries like Pakistan and Egypt plummeting to dangerous levels, threatening default.
The specter of a full-blown financial crisis loomed over the weekend, with voices warning that Trump was leading the global economy to the brink of collapse.
Monday, April 7, 2025: "Black Monday" was worse than expected. Asian and European markets collapsed at the opening: the Hang Seng Index fell 12%, and the Nikkei 225 fell 8%. The German DAX lost 9%, while the European STOXX 600 closed down 4%, its biggest loss since March 2020.
On Wall Street, panic selling took hold at the opening, with the S&P 500 index falling 7%, approaching a bear market. Liquidations swept the market, with even major stocks like Apple falling more than 10%. Oil prices fell to their lowest levels in four years, and gold fell more than 2%.
Trump defended his policy, saying the United States would make billions from the tariffs and urging investors to remain calm, arguing that the time was "perfect to buy." But the market shrugged off his remarks amid reports of pressure from some 70 countries seeking exemptions from the tariffs, and his advisors' fears of a full-blown financial collapse.
US President Donald Trump waves to a group of supporters.
US President Donald Trump waves to a group of supporters.
Despite rumors of the White House's intention to make concessions, US markets closed the day with fresh losses, capping four days of unprecedented declines for global stock markets.
Tuesday, April 8, 2025: Markets finally caught their breath, and signs of cautious stabilization emerged on this day, the day after the major crash. Many traders took a step back and reassessed the situation: should they continue selling and fleeing the market, or has bottom truly been reached?
News from Washington offered a glimmer of cautious optimism. In Congress, efforts accelerated among both Republicans and Democrats to curb the trade war, with calls for Trump to halt the madness before it's too late. The White House, for its part, issued veiled hints of its openness to dialogue with trading partners.
Although Trump himself remained defiant on the surface—reiterating via Truth Social his assertion that “the American economy is too strong to be shaken” and that the tariffs would deliver long-term benefits—his rhetoric was less inflammatory than before.
Markets picked up on these signals, and a technical recovery began: US indices registered slight gains on Tuesday, with some short positions being covered, and price volatility abated relatively. But this calm was more like the final storm before the final storm; everyone was waiting for a decisive decision from Trump that could turn the tide. Indeed, behind the White House doors, a tactical pullback scenario was being prepared under pressure from the president's financial advisors and pleas from major investors to save the market.
The world was cautiously awaiting Wednesday: Will Trump surprise everyone with a calming move, or will he continue his stubbornness?
Wednesday, April 9, 2025: The day marked the height of escalation and an abrupt end. This morning, China responded to the US's 104% tariffs by raising its own to 84% effective Thursday, declaring a "fight to the end." The trade war seemed to be spiraling out of control... until the US coup came in the afternoon.
In an unexpected move, Trump announced a 90-day suspension of tariffs on more than 75 countries, marking a temporary truce with the exception of China, which saw tariffs raised to 125% in response to its "disrespect for world markets," according to Trump.
This sudden decline ignited the markets: US indices jumped sharply, with the S&P 500 rising 7% and the Nasdaq 100 rising more than 9%. Apple stock jumped 13%, oil rose 4%, and Bitcoin surged by more than $5,000. Gold retreated slightly as risk appetite returned.
Markets were overjoyed, with Trump commenting, "It's time to get back to business!" But despite the breakthrough, tensions with China remained, while other countries temporarily caught their breath with the truce.
A market held hostage by tweets... or an exception that will not be repeated?
In conclusion, this turbulent week has witnessed an unprecedented, vivid example of the politicization of financial markets and their violent response to a tweet or a decision issued by the highest authority.
It's hard to overstate the lessons of this story: global stock markets nearly collapsed due to tweets and impulsive political decisions, before a counter-tweet and a last-minute tactical retreat saved them.
Markets may have breathed a temporary sigh of relief, but a fundamental question remains: Was this a rare exception that will not be repeated, or are we truly living in an era of politicized stock markets driven by tweets and political decisions?
The answer to this question will determine how investors will approach political news in the future, and whether we are entering a new era in which every presidential statement becomes a market variable as important as corporate earnings and interest rates. Only time will reveal the truth... but what is certain is that what happened in April 2025 will live long in the memory.