Trump's tariff war: stock markets collapse, investors in panic!

Trump's tariff war: stock markets collapse, investors in panic!

Today the global economy is experiencing a massive stock market crash that could go down in history as “Black Monday”. Stock exchanges around the world are recording dramatic losses after billions of dollars were wiped out in a very short space of time. US President Donald Trump is seen by many as being primarily responsible for this turmoil, particularly due to his controversial tariff policies. On his Truth Social platform, Trump celebrates the stock market decline and emphasizes that oil and food prices have fallen and that there is no inflation. However, he takes a critical view of China's customs practices, while the losses suffered by American investors remain unmentioned.

Economic pressure has increased due to expectations of a possible global recession. Investors fear that Trump's trade war will not only increase inflation, but also threaten economic stability worldwide. In this context, the US government has shown no signs of changing despite public criticism of its harsh policy of high import fees. Trade ministers from the EU states are discussing possible strategies in Luxembourg to get Trump to give in on the special tariffs. oe24 reports that stock markets in Asia posted massive losses on Monday morning, with Tokyo's Nikkei index falling 7.83 percent and Hong Kong's Hang Seng index falling 13.22 percent.

Reactions of financial markets and economies

According to numerous market observers, the effects of Trump's tariff policy are clearly noticeable. Global stock markets have suffered dramatic declines, with nearly $6 trillion in value lost from U.S. stocks in a week. Oil prices fell to their lowest level since April 2021. Germany's DAX also fell to its lowest level since September as fears of rising inflation continue to rise. This is backed up by warnings from economists who are predicting a third year of recession for Germany. world.de describes how the federal government is hoping for talks to avoid a trade war, while Chancellor Olaf Scholz is seeking exchanges with European heads of state and government.

Friedrich Merz from the CDU emphasizes that Germany's competitiveness must be addressed in the coalition negotiations. Asian financial markets are reacting anything but positively, with significant declines in Taipei (-9.7%), Tokyo (-8%), Shanghai (-7%) and Seoul (-5%). Investors are also finding it difficult to invest in the markets as trading platform Trade Republic reported technical problems due to the rush of new investors.

Global responses and strategic measures

The geopolitical climate is heating up as China criticizes US tariff policy as protectionist chicanery. Trump is demanding payments from foreign governments in return for lifting tariffs and is open to talks about tariff easing, but requires a balanced trade relationship. stock-world.de reports huge tariffs on US goods that have risen to an average of 22%, the highest since 1910, while China is subject to an additional 34% tariffs. Markets are under pressure and central banks are in a dilemma: interest rate cuts may be necessary to support economic activity while prioritizing currency stability.

In this tense situation, major government interventions are also planned in Great Britain to protect domestic companies from US tariffs. The EU is planning targeted countermeasures against US imports worth up to $28 billion. Financial experts recommend a cautious approach, prioritizing defensive sectors and bonds. The uncertainties in global financial markets continue to require a high level of attention from investors and policy makers.