Recently, the global stock markets have experienced severe fluctuations, primarily due to President Donald Trump’s announcement of a new round of comprehensive tariffs, which has triggered market concerns about a global trade war and an economic recession.

Tariff Policy Fuels Market Panic President Trump announced last week the imposition of high tariffs on all imported goods, with up to 50% tariffs added on imports from China, aimed at correcting what he calls the unfair global trading system. This move led to panic selling in global markets, as investors worried that escalating trade tensions would suppress global economic growth.

Global Stock Markets Plunge Sharply In the United States, major stock indices suffered heavy losses. The Dow Jones Industrial Average fell by more than 1,200 points, the Nasdaq Composite Index fell by 4%, and the S&P 500 Index fell by 3.8%, entering bear market territory. Asian and European markets were also not spared, with Japan’s Nikkei Index falling nearly 8% and European stocks down 6%.

Investors Seek Safe-Haven Assets Faced with market turmoil, investors flocked to safe-haven assets such as bonds and the Japanese yen. However, the volatility index (VIX) soared to above 60, indicating heightened market panic.

Economists Warn of Stagnation Risk Economists warned that tariff policies could lead the U.S. economy into “stagflation” – a situation characterized by stagnant economic growth, rising inflation, and high unemployment rates. Morgan Stanley has increased the probability of a U.S. economic recession in 2025 to 60%.

Reactions of Governments and Companies Governments around the world have stated that they will take retaliatory measures. For example, the European Union’s trade representative said that tariffs would be imposed on American goods starting April 15th. Businesses also expressed concerns, with Wall Street firms such as Goldman Sachs raising the probability of a U.S. economic recession to 45%.

Conclusion Currently, global markets are facing unprecedented challenges, and investors need to closely monitor trade policy developments and market changes, and prepare for risk management and asset allocation.