Markets Nosedive as Trump's New Tariffs Ignite Global Recession Fears

 
 
United Capital Group Usa
United Capital Group Usa
NICOSIA, Cyprus - April 6, 2025 - PRLog -- Global markets are reeling this week following the activation of sweeping new tariffs announced by President Donald Trump under his second-term administration. Effective April 1st, 2025, the tariffs have sent shockwaves through international trade channels, reigniting fears of a global economic downturn.

The newly imposed duties target a wide range of imports from China, the European Union, and several emerging economies, with rates as high as 35% on steel, automotive components, and consumer electronics. In a retaliatory move, China and other trade partners have already responded with counter-tariffs, setting the stage for a high-stakes economic standoff.

"This is not just a trade skirmish—this is a full-blown economic artillery exchange," said Priya Desai, Senior Economist at Global Trade Watch. "The global economy was barely regaining balance post-pandemic. These tariffs risk tipping us into a severe and prolonged recession."

Wall Street was quick to react. The Dow Jones Industrial Average plummeted over 1,200 points on Friday, its sharpest weekly decline since 2020. The S&P 500 and Nasdaq followed suit, with similar downturns mirrored across the FTSE, DAX, and Nikkei indexes.

The tariffs, framed by President Trump as a bold step to "protect American jobs and end unfair trade practices," have been met with concern from economists and business leaders alike. Many warn the real cost will be borne by consumers and small-to-mid-sized exporters who rely on open trade.

Major manufacturers are already slashing forecasts. "Overnight, our margins have collapsed," said Mark Leland, CEO of a mid-sized machinery exporter in Illinois. "We've frozen new orders and expect to cut jobs if the tariffs remain."

Inflation is another looming threat. With import costs rising rapidly, central banks are under renewed pressure to hike interest rates, risking a potential credit squeeze for already-struggling households and businesses.

The National Association of Manufacturers has estimated the U.S. could lose up to 1.2 million jobs by mid-2026 if retaliatory measures escalate further.

"This is no longer about trade; it's about survival," Desai added. "Global supply chains are breaking, investor confidence is crumbling, and the warning lights for recession are flashing red."

As President Trump doubles down on his America First agenda, world markets brace for turbulence. The question now is whether economic diplomacy can intervene before the global economy slides off the edge.

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