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Global stock markets are experiencing a serious drop amid fears of a new economic crisis triggered by US President Donald Trump’s aggressive tariff policy. Major Asian indices plummeted on Monday, while European markets opened with significant losses, Reuters reports.
The Nikkei 225 index in Japan lost up to 9% in the first hours of trading. In Hong Kong, the Hang Seng dropped by 8%, while China saw even deeper declines. Falling prices were also recorded in South Korea, Taiwan, Australia and other countries in the region. The European indices DAX, CAC 40 and FTSE 100 continue to fall, reaching their lowest levels in 16 months. The pan-European STOXX 600 index lost more than 5.8% before the start of the day.
The financial earthquake was caused by the massive import duties announced by the US President, which, according to Donald Trump, will not be temporary. He compared the new tariffs to “medicine” that must be taken to “cure” the economy.
“I don’t want to see markets go down, but sometimes you have to take bitter medicine to fix things,” Trump told reporters on board Air Force One. He added that other countries would have to “pay a lot of money” for the cancellation of tariffs.
Investors fear that such a policy could trigger a chain reaction of retaliatory actions by other countries, and eventually drag the global economy into recession. According to JPMorgan, the risk of a global growth slowdown has already reached 60%.
Against this backdrop, oil prices also went down: Brent dropped to $64.23 per barrel and WTI to $60.60.
The markets are entering the new week amid extreme volatility, with analysts warning of the likelihood of even deeper falls if the US does not change its course.
