Global Financial Turmoil: Tariffs and Treasuries Tumble

Global markets experienced extreme volatility as President Trump's 104% tariffs on China came into effect. U.S. bonds sold off aggressively, impacting the dollar and driving investors to safe-haven assets. Analysts warn of an imminent recession as financial markets continue to react to the trade war.

Global financial markets were rocked as President Donald Trump's hefty 104% tariffs on Chinese imports took center stage, triggering a massive sell-off in U.S. bonds and sparking fears of foreign capital withdrawal from American assets.

Crucially, U.S. Treasuries and the dollar, cornerstones of the global financial landscape, faced significant pressures. Trump's extensive tariffs could precipitate a recession, compelling the Federal Reserve to cut interest rates, as investors hurriedly disinvested in Treasury holdings, prompting an increase in yields amid falling bond prices.

The escalating trade conflict prompted a broader dollar weakness as investors flocked to gold and the Swiss franc. Market volatility reached crisis proportions with the S&P 500 suffering a historic slide, while safe-haven assets surged.

(With inputs from agencies.)