Mon Mar 10 13:40:00 UTC 2025: ## Global Markets Plunge Amid Trump’s Trade War and Recession Fears

**NEW YORK/BEIJING** – Global stock markets experienced significant declines on Monday, fueled by growing anxieties over the U.S. economy and the escalating global trade war initiated by the Trump administration. The S&P 500 fell 1.5 percent, while the tech-heavy Nasdaq Composite dropped 2 percent, extending last week’s steepest losses in months. European and Asian markets also suffered declines.

The downturn follows President Trump’s Sunday interview on Fox News, where he refused to rule out the possibility of a recession as a consequence of his economic policies. This statement, coupled with the ongoing uncertainty surrounding his fluctuating tariff policies, has deeply unsettled investors.

China implemented retaliatory tariffs on a range of U.S. agricultural products, including chicken, wheat, and corn, further escalating trade tensions. Meanwhile, Japan’s trade minister is in Washington this week to negotiate exemptions from upcoming tariffs on steel, aluminum, and potentially automobiles. These tariffs, set to take effect on Wednesday and April 2nd, threaten to significantly impact the Japanese economy, particularly its auto industry.

Economists are increasingly pessimistic. JPMorgan Chase estimates a 40 percent probability of a global recession this year due to “extreme U.S. policies,” while Goldman Sachs raised the likelihood of a U.S. recession to 20 percent. The uncertainty surrounding the tariffs, their duration, and ultimate impact is cited as the primary driver of market volatility, hindering business investment and hiring plans.

Adding to the uncertainty, a lawsuit has been filed against the Trump administration by Native American tribes and students, challenging the recent dismissal of numerous staff members at federally funded Native American schools. The plaintiffs argue that the layoffs have severely impacted the quality of education.

Furthermore, Democrats in Congress expressed dissatisfaction with their party’s uncoordinated response to President Trump’s address to Congress, highlighting internal divisions over how to effectively oppose his agenda.

The combination of economic uncertainty, escalating trade conflicts, and political instability has created a perfect storm, leaving investors seeking safe havens in bonds and casting a long shadow over the global economic outlook.

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