World stock markets plunge again as Trump doubles down on tariffs

[CharlieH]

•  

 

Global stock markets plunged to pandemic-level lows Monday as Trump’s tariff blitz sparked panic selling, with the S&P 500 teetering on bear market territory and Asian indexes suffering historic crashes. The meltdown follows China’s retaliatory 34% tariffs and Trump’s vow to keep his “beautiful” trade penalties in place despite economic chaos—a crisis analysts warn could eclipse 2008’s financial collapse.

 

Market Carnage:

• Asia Collapse: Tokyo’s Nikkei 225 cratered 7.8%, its worst day since 2020. Hong Kong’s Hang Seng nosedived 13.2%—its steepest single-day drop ever—while Shanghai’s index lost 7.3%.

• Europe’s Rout: Germany’s DAX briefly crashed 10% at open before stabilizing at -5.8%, mirroring Paris’ CAC 40 (-5.8%) and London’s FTSE 100 (-4.9%).

• U.S. Pre-Market: S&P 500 futures sank 3.4%, threatening to push the index into bear territory (-20% from peak), with Nasdaq futures down 5.3%.

 

Tariff Domino Effect:
Trump’s 10-50% tariffs on 185 nations—including 34% on China and 20% on the EU—met immediate retaliation. Beijing slapped 34% duties on U.S. goods, restricted rare-earth exports, and blacklisted 11 American firms. “This isn’t a trade war—it’s economic mutually assured destruction,” said Natixis’ Gary Ng.

 

Key Flashpoints:

• Recession Warnings: JPMorgan slashed U.S. GDP forecasts to -0.3% for 2025, predicting 5.3% unemployment as tariffs bite.

• Supply Chain Chaos: Howmet Aerospace declared force majeure on Airbus/Boeing parts, while Amazon faces profit headwinds and Tesla halted Shanghai exports.

• Safe-Haven Rush: Walmart and Costco surged as investors fled to consumer staples; Bitcoin dropped 4% alongside risk assets.

 

Corporate Casualties:

• Tech Wreck: Apple suppliers TSMC and Foxconn halted expansion plans, citing tariff uncertainty.

• Auto Apocalypse: Ford shares hit a 12-year low as EU tariffs threaten $2bn in annual losses.

• Energy Crisis: Chevron warned of $5/barrel oil price spikes if Middle East supply chains fracture.

 

Political Fallout:
Trump doubled down Sunday, calling tariffs “medicine” for a “sick” global trade system. But allies revolted: Israel’s Netanyahu seeks tariff relief in Monday talks, while Taiwan proposed zero-tariff negotiations. The EU is compiling a retaliation list targeting Kentucky bourbon and Florida oranges, and India eyes a bilateral deal to avoid U.S. duties.

 

China’s Gambit:
State media declared tariffs a chance to “turn crisis into opportunity,” vowing to boost domestic tech and rare-earth dominance. Goldman Sachs warns China’s GDP could drop 0.7% this year, but officials plan rate cuts and industry bailouts.

 

Federal Reserve Dilemma:
Jerome Powell faces a nightmare scenario: cutting rates to offset tariff pain risks hyperinflation from import price hikes. “We’re trapped between recession and stagflation,” said former Fed economist David Wilcox.

 

Sector Breakdown:

• Tech: Nasdaq’s 5.3% drop reflects tariff costs on chips and cloud services.

• Energy: Brent crude sank to $63.25/barrel on demand fears, hammering Shell and BP.

• Pharma: Pfizer warned of drug shortages as India restricts U.S. API imports.

•  

Historical Parallels:
The selloff’s speed—$6 trillion wiped in two days—rivals 2008’s Lehman collapse. But unlike 2020’s COVID crash, this crisis lacks a central bank “bazooka” fix.

 

What’s Next:

• Fed Decision: Emergency rate cut likely by July, despite inflation risks.

• Corporate Exodus: U.S. manufacturers face “nuclear winter” unless Trump pauses tariffs, warns billionaire Bill Ackman.

• Market Reality Check: Citi warns earnings haven’t priced in full tariff impacts: “There’s ample downside left.”

 

Why It Matters:
This isn’t just a market correction—it’s a stress test for globalization. With rare-earth supply chains fracturing and SMEs facing bankruptcy, the world faces a choice: capitulate to Trump’s demands or risk a 1930s-style trade collapse.

 

Based on a story by AP 

 

08.04.2025

[henryford1958]

These so called "plunges" just bring the markets back to where they were a year or so ago.

[JimHuaHin]

Seems that Trump has just started World War III - it may not be a military war (yet!), but it is certainly an economic war.  The USA, Israel and Russia against the rest.

[Digitalbanana]

27 minutes ago, henryford1958 said:

These so called "plunges" just bring the markets back to where they were a year or so ago.

With inflation, population growth and manufacturing and services growth - thats a good thing is it?

[Hamus Yaigh]

30 minutes ago, henryford1958 said:

These so called "plunges" just bring the markets back to where they were a year or so ago.

Read up about corrections, bear markets and recessions, then report back.

[Yagoda]

T Bills down to 4.17.

 

Steady drop. Winning.

[henryford1958]

8 minutes ago, Digitalbanana said:

With inflation, population growth and manufacturing and services growth - thats a good thing is it?

 

So they FTSE100 has only gone up 30% in the last 5 years instead of 35%, what a disaster!

[JonnyF]

The man is not for turning.

 

Everyone knows that investments may go down as well as up. That's why a long term approach is always the correct one. 

 

 

 

 

[Digitalbanana]

The long term approach should not include sending a country like the USA into recession because of tariff induced inflation, companies losing money and laying people off when only 4 months ago it was thriving with free trade and markets at all time highs and inflation albeit still high under control and falling. 

[Hamus Yaigh]

A "just trust" one man approach, with a support cast of executive office members all running the same insulting sound bites of adoring nonsensical rhetoric, for running the largest economy on the planet is not a sound economy? Congress needs to grow a pair and sort the sh** out soon.

[KhunLA]

Fear selling ... perfect scenario for 'market makers', and good time to invest when they bottom out, as will recover almost as fast.

 

I wouldn't be surprised if 'they' caused the fear selling.  And Trump gets the blame.   Yes, that is the scam of the markets ... IMHO, and from years of experience and watching them do, just that.

[Purdey]

Don't worry - when the depression starts. Trump will tell everyone

It was all caused by Biden and Obama. 

[RayC]

'Nero fiddles while Rome burns', or more accurately, 'Trump plays golf while the world's stock markets implode'.

[Cryingdick]

15 hours ago, henryford1958 said:

 

So they FTSE100 has only gone up 30% in the last 5 years instead of 35%, what a disaster!

 

The problem is that inflation has offset most if not all of those gains. In some cases it may have surpassed them. 

[Tug]

20 hours ago, JonnyF said:

The man is not for turning.

 

Everyone knows that investments may go down as well as up. That's why a long term approach is always the correct one. 

 

 

 

 

Absolutely correct it also goes without saying ya don't stab your trading partners in the throat or throw their national security under the buss ( nato/ukrain) im constantly amazed how you guys bend yourselves into pretzels trying to defend the indefensible.

[Purdey]

Canada about to cancel 80 F35s from USA and buy the Swedish Grippen.

Lots of winning.

[Patong2021]

A good business strategist would have addressed the tariff concerns by  breaking it down on a  country grouping instead of taking everyone on at the same time and causing economic harm. There are some countries /regions that were easily addressed and others who were more difficult. Canada/Mexico trade could have been handled much better and  been used as a model for other negotiations.

 

On 4/7/2025 at 8:40 PM, JimHuaHin said:

Seems that Trump has just started World War III - it may not be a military war (yet!), but it is certainly an economic war.  The USA, Israel and Russia against the rest.

 

Get a grip. Why add Israel to that group? Israel got hit with  tariffs too. The difference between Israel and some others is that it has been working on the issue for some time. Argentina and some central american nations  started before Israel.

 

23 hours ago, JonnyF said:

The man is not for turning.

 

Everyone knows that investments may go down as well as up. That's why a long term approach is always the correct one. 

 

Navarro isn't long term. Trump likes Navarro's approach because it offers the promise of a quick fix.

 

21 hours ago, KhunLA said:

Fear selling ... perfect scenario for 'market makers', and good time to invest when they bottom out, as will recover almost as fast.

 

I wouldn't be surprised if 'they' caused the fear selling.  And Trump gets the blame.   Yes, that is the scam of the markets ... IMHO, and from years of experience and watching them do, just that.

 

Monday's rally proved that wrong. Companies like Apple who rely on China are  in trouble.

 

12 minutes ago, Purdey said:

Canada about to cancel 80 F35s from USA and buy the Swedish Grippen.

Lots of winning.

 

Not exactly. 16 are already paid for and cannot be cancelled. The real motive behind the pause is the budget deficit and the  cost of the F35. The RCAF fleet cannot go any longer without immediate replacement, Over 1/2 can not fly now. The need for  new aircraft is urgent and the RCAF cannot have 2 fleets for such a small number of aircraft.

[newbee2022]

On 4/8/2025 at 7:07 AM, CharlieH said:

• 
  
•  

 

Global stock markets plunged to pandemic-level lows Monday as Trump’s tariff blitz sparked panic selling, with the S&P 500 teetering on bear market territory and Asian indexes suffering historic crashes. The meltdown follows China’s retaliatory 34% tariffs and Trump’s vow to keep his “beautiful” trade penalties in place despite economic chaos—a crisis analysts warn could eclipse 2008’s financial collapse.

 

Market Carnage:

• Asia Collapse: Tokyo’s Nikkei 225 cratered 7.8%, its worst day since 2020. Hong Kong’s Hang Seng nosedived 13.2%—its steepest single-day drop ever—while Shanghai’s index lost 7.3%.

• Europe’s Rout: Germany’s DAX briefly crashed 10% at open before stabilizing at -5.8%, mirroring Paris’ CAC 40 (-5.8%) and London’s FTSE 100 (-4.9%).

• U.S. Pre-Market: S&P 500 futures sank 3.4%, threatening to push the index into bear territory (-20% from peak), with Nasdaq futures down 5.3%.

 

Tariff Domino Effect:
Trump’s 10-50% tariffs on 185 nations—including 34% on China and 20% on the EU—met immediate retaliation. Beijing slapped 34% duties on U.S. goods, restricted rare-earth exports, and blacklisted 11 American firms. “This isn’t a trade war—it’s economic mutually assured destruction,” said Natixis’ Gary Ng.

 

Key Flashpoints:

• Recession Warnings: JPMorgan slashed U.S. GDP forecasts to -0.3% for 2025, predicting 5.3% unemployment as tariffs bite.

• Supply Chain Chaos: Howmet Aerospace declared force majeure on Airbus/Boeing parts, while Amazon faces profit headwinds and Tesla halted Shanghai exports.

• Safe-Haven Rush: Walmart and Costco surged as investors fled to consumer staples; Bitcoin dropped 4% alongside risk assets.

 

Corporate Casualties:

• Tech Wreck: Apple suppliers TSMC and Foxconn halted expansion plans, citing tariff uncertainty.

• Auto Apocalypse: Ford shares hit a 12-year low as EU tariffs threaten $2bn in annual losses.

• Energy Crisis: Chevron warned of $5/barrel oil price spikes if Middle East supply chains fracture.

 

Political Fallout:
Trump doubled down Sunday, calling tariffs “medicine” for a “sick” global trade system. But allies revolted: Israel’s Netanyahu seeks tariff relief in Monday talks, while Taiwan proposed zero-tariff negotiations. The EU is compiling a retaliation list targeting Kentucky bourbon and Florida oranges, and India eyes a bilateral deal to avoid U.S. duties.

 

China’s Gambit:
State media declared tariffs a chance to “turn crisis into opportunity,” vowing to boost domestic tech and rare-earth dominance. Goldman Sachs warns China’s GDP could drop 0.7% this year, but officials plan rate cuts and industry bailouts.

 

Federal Reserve Dilemma:
Jerome Powell faces a nightmare scenario: cutting rates to offset tariff pain risks hyperinflation from import price hikes. “We’re trapped between recession and stagflation,” said former Fed economist David Wilcox.

 

Sector Breakdown:

• Tech: Nasdaq’s 5.3% drop reflects tariff costs on chips and cloud services.

• Energy: Brent crude sank to $63.25/barrel on demand fears, hammering Shell and BP.

• Pharma: Pfizer warned of drug shortages as India restricts U.S. API imports.

•  

Historical Parallels:
The selloff’s speed—$6 trillion wiped in two days—rivals 2008’s Lehman collapse. But unlike 2020’s COVID crash, this crisis lacks a central bank “bazooka” fix.

 

What’s Next:

• Fed Decision: Emergency rate cut likely by July, despite inflation risks.

• Corporate Exodus: U.S. manufacturers face “nuclear winter” unless Trump pauses tariffs, warns billionaire Bill Ackman.

• Market Reality Check: Citi warns earnings haven’t priced in full tariff impacts: “There’s ample downside left.”

 

Why It Matters:
This isn’t just a market correction—it’s a stress test for globalization. With rare-earth supply chains fracturing and SMEs facing bankruptcy, the world faces a choice: capitulate to Trump’s demands or risk a 1930s-style trade collapse.

 

Based on a story by AP 

 

08.04.2025

Let him continue.

By this his days in the Whitehouse are numbered. 👍

[Digitalbanana]

On 4/8/2025 at 8:03 AM, henryford1958 said:

So they FTSE100 has only gone up 30% in the last 5 years instead of 35%, what a disaster!

The FTSE100 is totally insignificant to what Trump is doing, the US markets are worth about 43% of the global market, whereas the UK is about 3%.

[JustinT]

I'm so tired of all this winning.

[spidermike007]

So last October, when Scott Bessent, soon to become Treasury secretary, said that Trump was really a free trader who used tariffs as a negotiating tactic, Wall Street was eager to believe him. “It’s escalate to de-escalate,” Bessent told The Financial Times.

 

This claim was obviously absurd. Trump has been obsessed with tariffs, which he called “the most beautiful word in the dictionary,” for decades. In his 2018 book “Fear,” Bob Woodward reported that Trump scrawled “TRADE IS BAD” in the margin of a speech he gave after the G20 summit. It makes sense that Trump would see things this way. When he makes sales, whether of Trump University courses or Trump-branded cryptocurrency, he is usually taking advantage of the buyer, and he views global trade through the same zero-sum lens.

 

It’s widely known that during his first term, the so-called adults in the room thwarted some of Trump’s most destructive whims. There have been far fewer such figures in the Trump sequel, resulting in the wholesale degradation of American governance. The conspiracy theorist Laura Loomer just directed a purge of the National Security Council. Thanks to Elon Musk’s haphazard cuts, employees who once worked to prevent the spread of diseases like Ebola are gone, as are nuclear safety experts. There’s no one in the executive branch willing to publicly push back on Trump’s threats to take over Canada. Somehow, traders failed to recognize that there would eventually be economic fallout from such profound misrule.

 

“The markets should have put two and two together that if you’re talking about annexing Greenland, Canada, the Panama Canal, you’re probably going to be more radical on trade as well,” said Berezin.

 

But Wall Street professionals, like so many other ostensibly smart people, refused to see Trump clearly, mistaking his skill as a demagogue for wisdom as a policymaker. “I don’t think this was foreseeable,” a mournful Ackman posted on X on Monday. “I assumed economic rationality would be paramount.” What an odd assumption to make about a man who bankrupted casinos.

 

Usually, if stocks go down, so do yields on U.S. Treasuries, because they become more desirable to people looking for a safe place to park money. At least right now, that’s not happening, which he thinks could signal a crisis of confidence in the stability of the U.S. government and the debt it issues.

 

“If we’re moving to this new world where the U.S. just can’t be trusted, then do we really want to hold a lot of Treasuries?” he said as he sketched out investors’ thinking. “Do we really want to use the dollar as a reserve?” It turns out that there’s a price for taking all the soft power America has accrued since World War II and setting it on fire. Who knew.

[CanadaSam]

It's not the "market" in the US that lost almost 6 TRILLION in the past week, it's the investors, mostly american, that lost that money which was invested in the stock markets!

 

I wonder how these american investors feel about Trump today?

[Eric Loh]

14 minutes ago, CanadaSam said:

It's not the "market" in the US that lost almost 6 TRILLION in the past week, it's the investors, mostly american, that lost that money which was invested in the stock markets!

 

I wonder how these american investors feel about Trump today?

25% of total equities trading volume are retail investors which has doubled a decade ago. Their investments are ruined by a lunatic. 

 

[Tom Parkinson]

1 hour ago, CanadaSam said:

I wonder how these american investors feel about Trump today?

I feel the same way today about Trump that I did last week. He’s a complete ignoramus. It’s just that today I’m a lot poorer than I was last week. 

[spidermike007]

Most everybody in Washington and on Wall Street, thinks the tariffs are ridiculous, except for the sycophantic republicans in Congress and the Senate.

 

Trump is now in a death spiral and the recent retaliation of China and their 104% tariffs  on the $143 billion in US exports to China, plus the trillions of dollars in goods made in China by US companies, will simply precipitate his downfall and that of MAGA along with him.

 

Just watch and see, this didn't have to happen but he imposed this upon himself and the world, and he's going to pay a tremendous price for his arrogance, his stupidity, and his astonishing level of ignorance about world trade. Bye, bye Don. 

[rough diamond]

10 minutes ago, spidermike007 said:

Most everybody in Washington and on Wall Street, thinks the tariffs are ridiculous, except for the sycophantic republicans in Congress and the Senate.

 

Trump is now in a death spiral and the recent retaliation of China and their 104% tariffs  on the $143 billion in US exports to China, plus the trillions of dollars in goods made in China by US companies, will simply precipitate his downfall and that of MAGA along with him.

 

Just watch and see, this didn't have to happen but he imposed this upon himself and the world, and he's going to pay a tremendous price for his arrogance, his stupidity, and his astonishing level of ignorance about world trade. Bye, bye Don. 

And with the Chinese now doing another round of tariffs at 84% the US economy is going only one way while all of Asia and many other countries intertwine with China!

Goodbye Donald, and also the USA, and good riddance Donald!

[mrwebb8825]

President Trump knows there's a timeline he must achieve and to get all the players to the table quickly he needed a sledgehammer. He's been warning the world for 8+ yrs to change or prepare for the tariff restructuring. There is NO surprise to those who voted him in just for this type of leadership. Only surprise was to those who have blown the US off every time trade was brought up. A bit like the end of that Pink Floyd song: "Hello, this is the United States calling. Sir they've hung up. Try again. Sir, they keep hanging up".

So, he hit them right in the face so they quit "Hanging up".

It has been causing ASEAN countries to turn away from China. XI is losing popularity, having exposed China's true nature and intentions.

[RayC]

8 hours ago, mrwebb8825 said:

President Trump knows there's a timeline he must achieve and to get all the players to the table quickly he needed a sledgehammer. He's been warning the world for 8+ yrs to change or prepare for the tariff restructuring. There is NO surprise to those who voted him in just for this type of leadership. Only surprise was to those who have blown the US off every time trade was brought up. A bit like the end of that Pink Floyd song: "Hello, this is the United States calling. Sir they've hung up. Try again. Sir, they keep hanging up".

So, he hit them right in the face so they quit "Hanging up".

It has been causing ASEAN countries to turn away from China. XI is losing popularity, having exposed China's true nature and intentions.

 

So Trump's strategy is to (re)negotiate trade deals with +/-150 nations/ trading blocs simultaneously? Good luck with that.

 

Far from causing nations to turn away from China, if Trump doesn't withdraw tariffs sooner rather than later, he will deliver the ASEAN countries (and others) into China's lap.

[JustinT]

9 hours ago, mrwebb8825 said:

President Trump knows there's a timeline he must achieve and to get all the players to the table quickly he needed a sledgehammer

But he already panicked and dropped his sledgehammer on his own foot.

 

Nobody will take his threats seriously anymore after the bond market collapse forced him to removed his tariffs less than 24 hours after they were implemented.

[sharot724]

 

 

i did that