Global Markets Tumble as Trump's Tariffs Shake Economy

Global stocks, the dollar, and oil prices fell sharply as President Trump's new trade tariffs ignited fears of a recession. Investors fled to safe-haven assets like bonds and yen, while retaliatory tariffs from multiple countries further roiled markets. The hefty levies could significantly impact U.S. and global economic growth.

World markets saw a significant downturn Thursday as President Donald Trump announced aggressive new U.S. trade tariffs, sparking widespread fears of a potential global recession. Investors scrambled towards safe-haven assets such as hefty government bonds and the yen, amidst concerns over the escalating trade tensions and its toll on economic growth.

The tariffs announced include a new base rate of 10% on imports, with further severe 'reciprocal' levies applied to dozens of countries accused of having unfair trade practices. European markets responded with sharp declines, as the EU faced a 20% reciprocal tax, inducing volatility across the continent’s bourses.

Asian markets were hit hardest, notably Japan, with significant tariff impositions leading to a dramatic 2.7% drop. JP Morgan analysts described the tariffs as exceeding even the most daunting expectations, with several economic forecasters anticipating these measures could cut U.S. growth substantially over this year.