Fri Apr 04 15:05:02 UTC 2025: **Global Markets Plunge as Trump Escalates Trade War with China**

NEW YORK/LONDON (NDTV) — Global markets experienced a sharp downturn Friday following President Donald Trump’s escalation of the trade war with China. Responding to retaliatory tariffs imposed by China, Trump dismissed market panic and predicted that his policies, which include sweeping import duties on goods from numerous countries, would lead to unprecedented wealth.

Stock markets across the globe plummeted. The Dow Jones and S&P 500 both lost nearly three percent, while Frankfurt and London experienced losses exceeding four percent. Tokyo’s Nikkei closed down 2.8 percent.

Trump, unrepentant and spending a long weekend golfing, declared on Truth Social that his policies “will never change” and that this is “a great time to get rich.” He continues to bet that the size of the US economy will force foreign companies to shift manufacturing to American soil.

China responded forcefully to Trump’s tariffs, announcing its own 34 percent tariffs on US imports beginning April 10. Beijing also stated its intent to sue the US at the World Trade Organization and restrict the export of rare earth elements.

The European Union, which has also been targeted with US tariffs, is considering its response. While EU trade chief Maros Sefcovic emphasized a measured approach, he warned that the EU wouldn’t passively accept unfair trade practices. France and Germany have suggested imposing a tax on US tech companies as a possible retaliatory measure.

Japan, also affected by new US tariffs, urged a calm approach. Meanwhile, Canada swiftly retaliated against US tariffs on cars, prompting Stellantis to halt production at some plants in Canada and Mexico. Nissan announced production cuts and revised US sales plans, while Volvo Cars indicated plans to increase US production.

Despite widespread international criticism and concerns about rising prices at home from some Republicans, Commerce Secretary Howard Lutnick voiced support for Trump’s strategy, asserting that the president “knows what he’s doing.” The unfolding situation raises growing fears of a global recession.

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