Global Markets Reel as Trump’s Tariffs Spark Trade War Fears

Global markets plunged after U.S. President Donald Trump announced sweeping new tariffs, raising concerns of a full-blown trade war. The new policy includes a 10% baseline tariff on all imports and sharply higher duties on key partners like China, Japan, South Korea, and the EU. Apple’s iPhone prices could soar to $2,300, according to Rosenblatt Securities, while Nike and other global firms saw shares tumble—Nike dropped 14%, Apple fell 9%.

The Dow sank nearly 4%, the S&P 500 fell 5%, and the Nasdaq plunged 6%—its worst day since March 2020. Economists warn these tariffs could trigger inflation, increase recession risk, and cost U.S. families thousands.

The White House sent mixed signals: Trump said tariffs give the U.S. "great power to negotiate," while officials like Commerce Secretary Howard Lutnick and adviser Peter Navarro insisted the tariffs are permanent. Vice President JD Vance defended the move, citing national security and domestic manufacturing.

China and the EU vowed retaliation. French President Macron called for halting U.S. investments. Canada’s PM Mark Carney said the U.S. had abandoned global economic cooperation. Other nations like South Korea, India, and Mexico are waiting to respond.

The IMF warned the tariffs could harm global growth. Critics say the policy lacks strategy and could alienate allies in Asia, particularly Japan and South Korea, which were hit with 24% and 25% tariffs respectively. Taiwan faces a 32% tariff amid rising tensions with China.

Though Canada and Mexico weren’t hit with new duties Wednesday, they still face 25% tariffs and additional levies on autos. The tariffs are set to take effect April 9, leaving a window for potential changes—but markets remain on edge.