Trump’s Tariffs Trigger Global Market Meltdown

In early April, US President Donald Trump imposed sweeping tariffs on most of America’s key trading partners. He later referred to the move as a form of medicine for the economy.

Kursiv Uzbekistan analysed how global markets reacted to the decision.

European and Asian financial markets plunged as fears grew that the tariffs would disrupt global supply chains. Investors responded with sharp sell-offs across sectors.

By April 7, the European STOXX 600 index had dropped by 12%, despite previous forecasts predicting steady growth this year and next.

Meanwhile, the MSCI Asia Pacific index posted its worst decline since 2008, falling by 7.1%, according to the BBC. Japan’s Nikkei 225 index retreated by 20%. One BBC source described the market reaction as a bloodbath. Analysts warn that Asia may suffer the most severe consequences of Trump’s tariff policy.

US 10-year Treasury yields fell to 3.9%, reflecting a flight to safety. Futures on the S&P 500 also tumbled, losing more than 20%.

The tariff policy has also impacted hedge funds. Some funds are now preparing to offload large portions of their stock portfolios, as Trump’s measures threaten to wipe trillions off their market valuations.