How Trump's Tariffs Are Shaking The Global Economy

Trump’s New Tariffs Shake Global Economy: Stocks Fall, Oil Drops, and Recession Fears Grow

On April 2, 2025, President Donald Trump made a huge announcement: a 10 per cent tariff on all imports, starting April 5. Just a few days later, on April 9, even higher tariffs kicked in for certain countries — with a massive 104 per cent tariff on products from China. These changes have sent a wave of panic through global markets, causing the biggest shakeup in international trade in decades.

A Rocky Start for the Economy

The reaction was fast and intense. The U.S. stock market took a historic hit — the worst two-day loss ever seen. On just Thursday and Friday alone, $6.6 trillion disappeared from the market. Things didn’t improve much after the weekend. Even though there was a small bounce back on Tuesday, stocks dropped again on Wednesday when the tariffs officially hit dozens of countries.

The full impact? In just three days of trading — Thursday, Friday, and Monday — $10 trillion in global stock value was wiped out. To put that in perspective, that’s more than the combined economies of 150 different countries.

Major Stock Indexes Hit Hard

Let’s take a look at what happened in the U.S. markets:

-S&P 500: Dropped 1.6% to close at 4,982.77 — its worst four-day performance since it was created in the 1950s.

-Dow Jones: Fell 320.01 points, ending at 37,645.59.

-Nasdaq: Took the biggest hit percentage-wise, down 2.2% to 15,267.91.

These losses have pushed the market close to bear market territory, which means stocks are nearly 20% lower than their recent highs — a warning sign that investors are losing confidence.

Gold, Oil, and Bitcoin Also Take a Hit

Not just stocks, but other major assets are feeling the pressure. Normally, people buy gold in times of uncertainty, but even gold hasn’t held steady this time.

-Gold shot up after the tariff news, hitting $3,167 per ounce. But it quickly dropped 2% to $2,977 and has only slightly recovered since.

-Oil prices fell sharply — 7% right after the announcement, followed by another 2% drop. As of this week, oil is trading under $57 per barrel — its lowest level since 2021.

-Bitcoin, which many thought would thrive under Trump’s leadership, has dropped 30% since his January inauguration. It has gone from $109,000 to just $77,000.

Tariffs on 57 Countries — and More

Trump’s new policy affects 57 countries, territories, and trading groups with extra tariffs. On top of that, most other U.S. trade partners will still face the flat 10% import tax. While tariffs are supposed to help local businesses by making foreign products more expensive, they often end up raising prices for everyday consumers too.

Currency Turmoil Around the World

The currency markets have also been shaken. The U.S. dollar has weakened against big currencies like the euro and yen, while several emerging markets are also struggling.

Here’s a quick look at what’s happening:

-Euro: Rose slightly to $1.09 after falling for two straight days.

-British Pound: Dropped from £1.30 to £1.28 against the dollar.

-Chinese Yuan: Hit a 19-month low — now at 7.2038 yuan per dollar.

-Indian Rupee: Dropped 0.7%, the biggest single-day fall in three months.

-Japanese Yen: Gained strength, as investors see it as a safer choice. It's now at 146.41 per dollar, up from 150.36.

-Brazilian Real: Fell from 5.67 to 6.00 per dollar.

-Mexican Peso: Down from 20.34 to 20.89 per dollar.

-South African Rand: Lost 4.4% in one week, now at R19.75 — a two-year low.

Are We Heading Into a Recession?

A recession usually means two straight quarters of falling GDP, and experts are growing more concerned that one is coming soon.

Top banks are already warning about the risk:

- JPMorgan: Says there’s a 60% chance of a U.S. recession.

- Goldman Sachs and Morningstar: Estimate a 40–50% chance.

The trade war between the U.S. and China — the two biggest economies — is making people around the world nervous. When these giants clash, everyone else feels it too.

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Bottom Line: President Trump’s tariffs are causing big waves across the global economy. From stock crashes and falling oil prices to weaker currencies and recession worries, the world is bracing for what comes next. Whether this tough approach helps or hurts the U.S. in the long run is still uncertain — but for now, markets are on edge.

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