Stock futures plunge amid Trump tariff turmoil
Trump's tariff policies spark market turmoil, with experts warning of a looming recession and weakening U.S. economic alliances amid rising uncertainty.
Futures for the major U.S. Stock indices fell sharply due to President Donald Trump's decision to impose aggressive tariffs on imports, raising fears of a trade war and a possible recession. Futures for the S&P 500 and Nasdaq 100 fell more than 3%, while the Dow Jones Index fell nearly 1,200 points, equivalent to 3.33%.
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Global markets plunge as Trump's tariffs trigger retaliation, oil prices drop amid economic concerns
This negative reaction is spreading to international markets; Japan's Nikkei 225 lost 7.8% and Hong Kong's Hang Seng fell 13.2%. Furthermore, oil prices plummeted below $60 per barrel due to concerns about weaker global demand.
The implementation of these tariffs, which range from 10% to 50%, has prompted retaliation from China, which has imposed additional taxes on US imports. Economists and investors express concern that these measures could slow global growth, increase inflation, and generate prolonged market volatility.
Trump's tariff strategy raises recession fears and market concerns
Prominent financial figures, such as Jamie Dimon of JPMorgan Chase, warn that Trump's protectionist policies could damage vital US economic alliances. Goldman Sachs has raised the probability of a recession to 45%, and fund manager Bill Ackman points out that market declines weaken Trump's negotiating position in trade talks.
Despite growing concerns and warnings of potential negative economic consequences, Trump remains steadfast in his decision to implement these tariffs, describing them as necessary "medicine" to correct trade imbalances and stimulate domestic production. However, he acknowledges that these measures may cause short-term economic pain.