Global Markets Plunge as US Tariff Fallout Fuels Recession Fears
World markets nosedived today as investors reacted to rising fears of a global recession sparked by sweeping US tariffs announced last week.
On Wall Street, major indexes opened sharply lower amid deepening economic concerns. The Dow Jones fell over 3%, the S&P 500 dropped 3.5%, and the Nasdaq Composite tumbled 4%.
Just minutes before the opening bell in New York, US President Donald Trump urged Americans to “be strong, courageous, and patient.” Referring to his controversial trade policies, he said, “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid!... Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
European markets mirrored the turmoil. The FTSE 100 in London slid 4.4%, the Paris CAC 40 dropped 4.8%, and Frankfurt’s DAX index lost 4.1%. Dublin’s ISEQ index also took a hit, shedding 395 points (4%) to close at 9,308. Major Irish companies like FBD Holdings, Dalata Hotel Group, Kerry Group, and Kingspan led the losses.
Earlier in Asia, markets suffered sharp losses. Hong Kong stocks endured their worst single-day drop in over 16 years, plunging 13.2% after China vowed retaliatory tariffs of 34% on all US goods starting April 10. The move escalated tensions following Trump’s trade offensive and heightened fears of a global downturn.
Australia’s benchmark index slumped 4.2%, marking one of its worst trading sessions in over a year, while Japan’s Nikkei 225 dropped 7.8% after an early plunge of nearly 9%.
Taiwan experienced its steepest single-day decline on record, with its main index crashing nearly 10%. Trading resumed after a two-day holiday break, and markets reacted to a newly imposed 32% US tariff on Taiwanese goods. President Tsai Ing-wen took to X (formerly Twitter) to promise a “golden age” of shared prosperity with the US, despite the blow to Taiwan’s heavily export-reliant economy.
As markets continue to reel, the full impact of the US tariff strategy—and global retaliation—remains uncertain, but signs of investor panic are already reverberating worldwide.