Global Markets Plunge Amid US-China Tariff Conflict

The stock markets experienced extreme volatility in the week following U.S. President Donald Trump's announcement of significant tariffs, leading to a massive sell-off and a loss of over $5 trillion in market value. From April 2, when Trump initiated a blanket 10% tax on imports, market reactions were chaotic, with global equities facing their most severe downturn since the pandemic. The situation escalated into an open economic conflict with China, as tariffs rose to as much as 145% on various goods, causing turmoil across multiple asset classes including stocks, bonds, and currencies. Analysts indicated that investor confidence has been severely shaken, resulting in unpredictable market swings and heightened nervousness about the future of trade relations. Despite brief recoveries, such as a 90-day pause in tariffs that momentarily boosted the markets, the underlying issues remain unresolved, and tensions between the U.S. and China continue to simmer. Overall, this period is marked as one of the most tumultuous in recent financial history, reflecting deep concerns about the implications of aggressive trade policies.