Recently, global stock markets have experienced sharp volatility, primarily due to the new round of comprehensive tariffs announced by US President Donald Trump, which has sparked market concerns about a global trade war and economic recession

Tariff policies trigger market panic

President Trump announced last week that he would impose high tariffs on all imported goods, with tariffs of up to 50% on imports from China, aiming to correct what he called an unfair global trade system. This move has led to a panic sell-off in global markets as investors worry that escalating trade tensions will stifle global economic growth.

Global stock markets plunged sharply

In the United States, major stock indexes suffered heavy losses. The Dow Jones Industrial Average fell by more than 1,200 points, while the Nasdaq Composite Index dropped 4% and the S&P 500 Index fell 3.8%, entering bear market territory. Asian and European markets were also not spared, with the Nikkei 225 in Japan falling nearly 8% and European stock markets dropping 6%.

Investors seek safe-haven assets

Faced with market volatility, investors are turning to safe-haven assets such as bonds and the yen. However, the market volatility index (VIX) has surged above 60, indicating heightened market panic.

Economists warn of stagflation risk

Economists warn that tariff policies could lead to “stagflation” in the US economy – a situation where economic growth stagnates, inflation rises, and high unemployment coexist. JPMorgan Chase has raised the probability of a recession in the U.S. economy in 2025 to 60%.

Reactions from various governments and businesses

Governments around the world have stated that they will take retaliatory measures. For example, the EU trade commissioner said that it would begin imposing retaliatory tariffs on US goods on April 15th. The business community has also expressed concerns; Wall Street firms like Goldman Sachs have raised the probability of a US economic recession to 45%.

Conclusion

Currently, global markets are facing unprecedented challenges; investors need to closely monitor trade policy developments and market changes, and manage risks and asset allocation