Fri Apr 04 20:30:00 UTC 2025: ## Global Markets Plunge as Trump’s Tariffs Spark Trade War Fears

**New York, NY** – Global stock markets experienced a dramatic sell-off on Friday, marking the worst week since the onset of the COVID-19 pandemic in 2020, following President Donald Trump’s announcement of new tariffs on Chinese goods and China’s subsequent retaliatory measures. The Dow Jones Industrial Average plummeted 2,231.07 points (5.50%), closing at 38,314.86, its biggest one-day drop since June 2020. The S&P 500 fell 5.97% to 5,074.08, and the Nasdaq Composite shed 5.82%, closing at 15,587.79, entering a bear market.

China responded to Trump’s tariffs by imposing a 34% levy on all US products, triggering widespread concern about a global trade war and potential recession. Technology stocks, particularly those with significant exposure to China such as Apple (down 13% for the week), Nvidia, and Tesla, led the decline. Other major exporters to China, including Boeing and Caterpillar, also suffered substantial losses.

The CBOE Volatility Index (VIX), a measure of market fear, surged above 40, a level typically seen only during sharp market declines. Investors sought refuge in safer assets like bonds, pushing the 10-year Treasury yield below 4%.

Despite the market turmoil, President Trump remained defiant, stating on Truth Social that his policies would not change. Experts expressed concerns about the long-term economic consequences of an escalating trade war. Fidelity’s Jurrien Timmer highlighted the risk of a rotation away from the “Magnificent Seven” megacap technology stocks as a more immediate concern than a recession.

The sell-off wasn’t uniform across sectors. Energy and financial stocks significantly underperformed, while consumer discretionary sectors fared relatively better. Interestingly, Bitcoin bucked the trend, rising approximately 1.8%, leading some analysts to believe the stock market’s reaction was overblown.

Several technology companies, including Klarna, StubHub, and Chime, delayed their initial public offerings (IPOs) due to the market uncertainty. Former Goldman Sachs CEO Lloyd Blankfein urged Trump to allow countries to negotiate the tariff rates, suggesting a compromise.

Economists expressed varying opinions on the likelihood of a recession, with estimates ranging from 50% to 60%. Federal Reserve Chair Jerome Powell indicated the central bank would wait for greater clarity before adjusting its monetary policy stance.

The sharp market downturn prompted criticism from CNBC’s Jim Cramer, who questioned the White House’s strategy and expressed concern for the impact on investors’ retirement savings. The widespread sell-off underscores the significant uncertainty and apprehension gripping global financial markets in the wake of Trump’s escalating trade war.

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