Global Markets Reel as Trump's Tariff Strategy Rattles Investors

U.S. President Donald Trump's announcement of new tariffs rattled global markets, leading to a significant decline in stock indices like the S&P 500 and Nasdaq. Investors shifted focus to safer assets amid fears of slower economic growth and rising inflation. Analysts discussed the implications for U.S. trade and global economic stability.

Global markets experienced a significant downturn on Thursday following U.S. President Donald Trump's unveiling of reciprocal tariffs as a response to duties imposed on American goods by other countries.

The announcement sent stock markets tumbling, with the S&P 500 falling nearly 5% and the Nasdaq dropping around 6%. Investors sought refuge in bonds, gold, and the yen, as U.S. Treasury yields decreased and crude oil prices fell.

Financial analysts voiced concerns about the tariffs' potential to slow economic growth, increase inflation, and disrupt global trade dynamics. The announcement prompted a flight to safety as market participants assessed the longer-term implications for the U.S. economy and international economic relations.

(With inputs from agencies.)