US stock markets tumbled after President Donald Trump approved tariffs on Canada, Mexico, and China, sparking fears of a global trade war. Major indexes in the US dropped sharply, with the Nasdaq losing 2% and the Dow declining by over 1% within minutes of trading.
European and Asian markets also suffered losses, with Germany and France seeing a 1.5% dip and London’s FTSE 100 falling by 1.4%. Investors reacted with concern as they anticipated economic disruptions that could weaken corporate earnings and slow global growth.
The US dollar strengthened against China’s yuan, but the Canadian dollar plunged to its lowest point in 2003. Trump announced a 25% tariff on imports from Canada and Mexico, while Chinese-made goods face an additional 10% levy.
These measures, linked to Trump’s concerns about illegal migration and drug trafficking, target America’s largest trade partners. In response, Canada, China, and Mexico vowed retaliation, escalating tensions.
Trump also warned of tariffs on the EU, though he suggested a trade deal with the UK could be possible. The impact rippled across industries, with tech giants like Apple and Nike suffering 3% in stock losses.
Automakers like General Motors and Tesla saw sharp declines, while Toyota and Honda plunged 5% and 7.2% in Japan, respectively. Oil prices rose as traders assessed supply disruptions from Canada and Mexico.
As global markets react, analysts predict continued volatility, warning that escalating trade tensions could destabilize the US economy. Trump’s tariffs triggered a market plunge, weakened consumer confidence, and created long-term economic uncertainty.
