Stock Markets Plunge Amid Global Trade Tensions
Stock markets around the world experienced a significant drop on Monday as concerns over global trade tensions escalated following US President Donald Trump threatening tariffs on Canada, China, and Mexico.
The turmoil started with Wall Street’s main indices plummeting at the opening bell, only to partially recover later in the day after Trump decided to postpone tariffs on Mexico by one month. Nevertheless, the announcement of 25% tariffs on Canadian and Mexican imports and 10% on Chinese goods sparked fears of a potential global economic slowdown.
European markets also closed in the red, with automotive giants like Volkswagen and Stellantis facing substantial losses. The downward trend continued in Asian markets, with most indices ending the day on a negative note.
Financial experts raised concerns about potential inflation and a slowdown in economic growth as a result of the imposed tariffs, causing investors to grow increasingly anxious about the uncertain future. While acknowledging the possible economic hardship for Americans, Trump deemed it a necessary sacrifice, stating that it was “worth the price.”
The ripple effect of the trade tensions was felt across the tech sector, with market leaders such as Tesla and Apple witnessing sharp declines in their stock values.
