Fri, 04 Apr 2025

Fri, 04 Apr 2025 Worst week for US stocks since Covid crash as China hits back on tariffs

The US president, who has vowed to remake the global trade order, dismissed concerns, noting the US jobs market is strong.
Global stock markets have plunged, with US indexes falling over 5% and other major markets experiencing similar declines. The downturn is attributed to the escalating trade war between the US and China, which has seen each country impose tariffs on imports from the other. Analysts warn that this could lead to a global economic recession. China responded to the US's initial tariffs by imposing its own taxes of up to 34% on American goods. This move has been described as "bullying" by Chinese officials and is seen as a clear escalation of the trade dispute. The US stock market, led by indexes such as the S&P 500, have dropped sharply in response to the tariff announcement. Companies that rely heavily on suppliers in Asia, such as Apple and Nike, have seen their shares plummet. Other sectors, including consumer staples, healthcare, and utilities, are also experiencing losses. Analysts say that the tariffs will lead to a contraction in trade and could drive many countries into recession. The US Federal Reserve has warned of slowing growth and rising prices due to the tariff dispute. Countries such as Vietnam and Cambodia have offered to negotiate with the US over tariffs, while European Union officials have expressed concerns about the impact on global trade. Some investors are downplaying the losses, saying that they follow a long period of market growth. Small business owners, however, are bracing for the worst, with one owner in New Jersey warning that his appliance shop may be forced to shut down due to higher prices on imported goods. The White House is maintaining its stance on tariffs, despite criticism from some allies. Republican Senator Ted Cruz has expressed concerns about the potential risks of a global trade war. Fishing companies in the Falkland Islands are also worried about the impact of new tariffs, which could affect their exports to the US. Overall, the escalating trade dispute between the US and China is having far-reaching consequences for global stock markets and economies.
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