Wall Street Turmoil: Tariffs Trigger Trade War Fears

Wall Street experienced significant declines as President Trump's implementation of tariffs sparked fears of a global trade war and recession. Investors retreated to safer assets, leading the S&P 500, Nasdaq, and Dow Jones to fall. China's vow for retaliation and other global reactions heightened market volatility.

Wall Street witnessed major losses on Thursday as U.S. President Donald Trump's sweeping tariffs sparked fears of an inevitable trade war and possible global recession. Investors rushed to secure safer government bonds, moving away from risky assets after Trump imposed a 10% tariff on most U.S. imports, accompanied by higher levies on other countries.

The tariffs signal a stark shift from the business-friendly policies expected just months ago under the Trump administration, which had pushed U.S. stocks to unprecedented highs. Now, with a new economic reality, investors are selling off positions, concerned about international retaliation to the tariffs.

Notably, China and the European Union have vowed retaliation against the tariffs, while nations like South Korea, Mexico, and India have opted to delay action, seeking concessions first. Volatility is expected to rise as global markets react, evidenced by the CBOE Volatility Index hitting a three-week high.

(With inputs from agencies.)