President Donald Trump opened the door to trade talks just hours after global markets crashed. The sudden drop followed his announcement of new tariffs on goods from around the world. Speaking on Air Force One, Trump said he was ready for “phenomenal” deals if other nations made fair offers. His comments marked a shift from earlier White House statements. Officials had said the new tariffs were firm and not open to change.
On Wednesday, Trump announced a 10% tariff on all imports, with extra charges for select countries. These will begin on April 5, with more penalties on April 9. While Trump promised the shock was temporary, investors feared long-term damage. Many now worry the trade war could hurt the world economy.
Wall Street Suffers Its Worst Day Since 2020
The U.S. stock market took a major hit. It was the biggest single-day drop since the COVID-19 crisis in 2020. The Dow Jones fell by 1,600 points, a 3.98% loss. The S&P 500 dropped 4.84%, while the Nasdaq crashed 5.97%.
Apple stock fell by 9.25%. Investors fear the company will face trouble in China, where it gets many of its products. China now faces a 54% import tax from the U.S. In response, Beijing promised “strong countermeasures.”
Amazon and Meta also suffered, with each losing 9%. Nvidia dropped by 7.8%. Other tech giants, known as the “Magnificent Seven,” lost between 2% and 6%.
Retail stocks were hit hard too. Nike fell 14.4%. Lululemon lost 9.6%, and Ralph Lauren dropped 16.3%.
The U.S. dollar also weakened. It dropped against all major currencies in the G10 group. The dollar index fell below 102. At the same time, safe-haven currencies like the euro, yen, and Swiss franc gained ground.
Bonds rallied as investors fled stocks. The 10-year U.S. Treasury yield dropped by 9 basis points to 4.04%. Gold prices rose as well, though they fell slightly from earlier highs.
Expert Warnings About Confidence and Confusion
Michael Brown, a senior strategist, warned that confusion over U.S. trade policy could hurt both businesses and consumers. “If no one knows what to expect next, people stop spending and companies stop hiring,” he said.
Analysts fear that more tariffs could slow down trade. If countries respond with their own taxes, it could lead to a chain reaction. This kind of tit-for-tat strategy often ends in economic pain for all sides.
Europe Feels the Heat as Tariffs Spread
Europe was not spared from the fallout. Trump also announced a 20% tariff on goods from the European Union. The news sent European stocks plunging.
The Stoxx 600 dropped 2.7%. Germany’s DAX index fell 3.01%. France’s CAC 40 declined 3.31%. French President Emmanuel Macron urged businesses to freeze U.S. investments until the issue is resolved.
Luxury brands took a major hit. LVMH dropped 5.62%, Hermès lost 3.51%, Richemont slid 6.32%, and Kering plunged 7.51%. Adidas suffered one of the worst drops, falling 12%. The company relies heavily on U.S. sales.
German automakers also declined. Volkswagen dropped 4.42%. BMW lost 3.55%, and Porsche slipped 3.06%. The U.S. has now placed a 25% tariff on European cars.
China and Others Respond to U.S. Moves
China has said it will respond with strong action. The Chinese Ministry of Commerce called the U.S. move “unjust and harmful.” They added that China will protect its interests at any cost.
Other countries are also watching closely. Canada, Mexico, and South Korea have all voiced concern. They warned that more tariffs could harm global trade.
A Possible Opening for Diplomacy
Despite the turmoil, Trump’s latest comments hint at a softer stance. “We’re ready for amazing deals,” he said, “if other nations offer something good in return.”
Some experts see this as a chance to avoid a full trade war. Talks could ease tensions and bring stability to the markets. Others remain cautious, saying the White House often changes its tone.
What’s Next for the Global Economy?
Investors and companies around the world are bracing for more changes. If the U.S. follows through with all planned tariffs, the effects could be wide-ranging.
Many fear rising prices for everyday items. Others worry that trade fights will hurt job growth and delay recovery from past crises.
Still, some analysts believe the pressure could push nations to the table. A new round of talks could help ease the fears and bring clarity to the markets.
As the world reacts to Trump’s tariffs, all eyes are on Washington. Will this be the start of new trade deals or the beginning of a deeper global slump? For now, the markets are on edge, and the future remains uncertain.