Fri Apr 04 12:42:09 UTC 2025: ## Global Markets Plunge Amidst US-China Trade War Escalation

**New York/London, April 4, 2025** – Global markets experienced a sharp downturn on Friday, April 4th, 2025, following China’s retaliatory tariffs on US goods in response to President Trump’s recent tariff hikes. The S&P 500 plummeted 6%, marking the worst week since the 2020 pandemic-induced market crash. The Dow Jones Industrial Average fell 5.5%, losing 2,231 points, while the Nasdaq composite tumbled 5.8%, falling more than 20% below its December record. Thursday saw similarly devastating losses, marking Wall Street’s worst day in five years.

European markets suffered equally dramatic losses, with Germany’s DAX down 5%, France’s CAC 40 down 4.2%, and Britain’s FTSE 100 down 3.8%. China announced a 34% tariff on all US imports, mirroring the US tariff on Chinese goods. This impacted US companies heavily, with Deere & Co. and Boeing seeing significant share drops. Apple also experienced a 4.7% decline. Further, China imposed additional export controls on rare earth materials and trade sanctions on 27 US companies, filing a WTO lawsuit over the tariffs.

The escalating trade war sent shockwaves through various sectors. Crude oil prices fell to their lowest since mid-2021, and the US dollar weakened against the yen and euro. Even gold, typically a safe haven asset, experienced a decline. Economists warn of a potential combination of slowing economic growth and rising inflation, with UBS estimating that the tariffs could decrease US economic growth by 2 percentage points and inflate prices close to 5%.

Asian markets also felt the impact, with Tokyo’s Nikkei 225 down 2.8% and South Korea’s Kospi down 0.9%. Australia’s S&P/ASX 200 also dropped 2.4%. The March US jobs report, released later in the day, did little to stem the decline. Treasury yields fell, reflecting expectations of future interest rate cuts and broader economic concerns. Canada also announced retaliatory tariffs on some US auto imports.

Despite these widespread losses, US and Canadian officials stated their commitment to negotiating lower tariffs with the Trump administration. The ongoing situation highlights the significant risks posed by the escalating trade war to the global economy.

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