Stock Market
Global Sell-Off Deepens Amid Trump’s Tariff Turmoil
The global market rout sparked by US President Donald Trump’s aggressive tariff policies intensified across Asia and Europe on Monday. Now, the United States braces for more pain when its markets open, raising fears of a historic financial downturn.
Although Trump has doubled down on his controversial trade approach, his administration struggled over the weekend to deliver a unified message. Meanwhile, even some of his closest billionaire supporters are beginning to call for a shift back toward freer trade.
Here’s a closer look at how the chaos is unfolding:
Asian Markets Plunge to Historic Lows
To begin with, Asian markets took a severe beating. Hong Kong’s benchmark Hang Seng index closed 13.2% down — marking its worst single-day performance since 1997. Importantly, Friday’s annual public holiday had delayed the full impact of the tariffs, leading to Monday’s sharp decline.
Across the region, investor sentiment remains deeply shaken, with uncertainty looming over how prolonged the downturn could become.
Europe Follows Suit
Meanwhile, European stock markets mirrored the Asian slump. Major indexes across the continent are down around 5% midway through the trading day. At the same time, European Union trade ministers are urgently convening in Brussels to craft a strategic response to the US tariffs.
Clearly, global confidence is eroding fast, and Europe’s political and financial leaders are scrambling to contain the fallout.
US Markets on the Brink
Furthermore, the US markets are teetering dangerously close to a historic milestone. If the S&P 500 closes 20% below its recent peak, it would officially mark a bear market — the earliest such reversal in the history of the index for a new US administration.
Financial analysts are warning that such a rapid transition could shake both Wall Street and Main Street confidence for months to come.
Financial Leaders Sound the Alarm
Adding to the growing chorus of concern, JPMorgan Chase CEO Jamie Dimon issued a stark warning. He stated that Trump’s tariffs could spark higher consumer prices, trigger a global recession, and ultimately weaken America’s global alliances.
Thus, major voices from the financial sector are increasingly distancing themselves from the administration’s hardline trade stance.
Trump Defends His Strategy
Nevertheless, Trump remains unbowed. Speaking to reporters late Sunday, he acknowledged the market turmoil but insisted, “sometimes you have to take medicine to fix something.”
Moreover, in a Truth Social post on Monday morning, Trump defended the tariffs, arguing they would generate billions in revenue for the United States. However, critics point out that higher tariffs often lead to higher costs for American businesses and consumers.
Allies Break Ranks
In a notable development, some of Trump’s billionaire backers are now publicly criticizing his trade policy. For example, Tesla and SpaceX CEO Elon Musk voiced support for a “zero-tariff situation” between the US and the European Union. Likewise, hedge fund manager Bill Ackman has also urged a return to freer trade principles.
This growing dissent among high-profile supporters could further complicate the administration’s position moving forward.
Mixed Messages from MAGA Officials
Compounding the confusion, top Trump officials delivered conflicting messages over the weekend. Some hinted at possible tariff exemptions, while others indicated the levies are non-negotiable.
Former Treasury Secretary Larry Summers slammed the administration, stating that it “doesn’t have a coherent message on why it’s implementing the largest tax increase” seen in the US in half a century.
What’s Next?
In conclusion, the stock market’s current turmoil reflects deep uncertainty about US trade policy, global economic growth, and political stability.
Investors, policymakers, and business leaders will be watching closely as the US markets open. Whether Trump’s gamble will pay off — or backfire spectacularly — remains to be seen.
Stay tuned for updates as this story develops.