Trump holds a firm stance on Tariffs, irrespective of the massive global losses last week.

Markets face massive losses:

Stock markets and oil prices crashed on what many called a “Black Monday.” Investors around the world panicked as Trump refused to soften his trade stance. His strong support for higher tariffs triggered fears of a global recession. Markets across Asia, Europe, and the US suffered huge losses. Oil prices also dropped to their lowest level in nearly four years.

Trump urges Americans:

Trump told Americans to “be strong, courageous, and patient.” His message came as Wall Street dropped by over 3% at the opening bell. There was brief hope that the US might pause the new tariffs for 90 days. Stocks rose slightly. But those hopes quickly vanished when the White House confirmed the tariffs would continue. The market dropped again, wiping out trillions of dollars in value.

Also Read: Trump Imposes New Tariffs To Address Trade Imbalances

Asian markets hit hard:

Asian markets faced some of the worst losses in decades. Hong Kong stocks dropped 13.2%, their biggest fall in almost 30 years. Taipei had its worst day ever, crashing 9.7%. Tokyo ended the day down nearly 8%. These markets fell due to growing fears of a global economic slowdown caused by the trade war.

European markets struggle:

Europe is also struggling due to the high tariffs imposed by Trump. Frankfurt’s stock index fell 10% during the day. Bitcoin dropped by 5.5%, while the US dollar bounced back after last week’s decline.

Oil Prices fall to four-year lows:

Oil prices also took a hit. Crude oil fell 2% on Monday after already losing 11% last week. Both Brent and US crude are now on track to close at their lowest levels since April 2021.

New Tariffs deepen the crisis:

A 10% basic tariff on many global imports began last Saturday. But that’s not all. The US will impose 34% tariffs on Chinese goods and 20% tariffs on goods from the European Union. In response, China announced its own 34% tariffs on US goods. These tariffs will take effect on Thursday. But tensions rose further when Trump threatened to add a 50% tariff on China, if Beijing doesn’t drop its retaliation.

Trump refuses to back down:

Many hoped that Trump would reconsider after seeing the market crash. But on Sunday, he dismissed any chance of a deal unless the US trade deficit was reduced. On Monday, Trump tweeted, “Don’t be Weak! Don’t be Stupid! Be Strong, Courageous, and Patient, and GREATNESS will be the result!” He compared the economic pain to medicine, saying: “Sometimes you have to take medicine to fix something.” But this “medicine” has wiped trillions of dollars off the value of global companies. These losses are also hurting American retirement savings.

Experts warn of economic trouble:

Jamie Dimon warned that Trump’s tariffs could increase inflation. He said, “Whether or not the tariffs cause a recession is still unclear, but they will definitely slow down growth.” His remarks regarding the tariffs showed concerns about long-lasting global trading.