Sun Apr 06 07:11:22 UTC 2025: ## Global Markets Plunge After Trump’s Surprise Tariffs; Crash Fears Loom

**New York, April 5, 2025** – Global markets experienced a dramatic two-day sell-off following President Donald Trump’s announcement of sweeping global tariffs on Liberation Day. The Dow Jones Industrial Average plummeted 2,231 points, triggering fears of a widespread economic crisis. CNBC commentator Jim Cramer warned of a potential market crash reminiscent of Black Monday in 1987, stating that the situation could rapidly worsen if President Trump doesn’t take action to mitigate the damage.

The S&P 500 lost $5 trillion in value since the tariff announcement, with the Nasdaq entering a bear market, down over 22.7% from its record high. The Dow and the pan-European STOXX 600 index also entered correction territory, experiencing their worst weekly percentage losses since the start of the pandemic. The Cboe Volatility Index soared to its highest level since April 2020, reflecting heightened investor anxiety.

President Trump’s tariffs have sparked international outrage, with countries threatening retaliatory measures. China announced 34% tariffs on American goods, fueling concerns of a full-blown trade war. Japanese Prime Minister Shigeru Ishiba declared the situation a national crisis, citing a significant drop in banking shares and the Tokyo stock market’s worst week in years.

JP Morgan Chase now estimates a 60% probability of a global recession by year’s end, a significant increase from their previous 40% prediction. The White House has offered conflicting signals regarding the tariffs’ permanence, with President Trump claiming they provide leverage for negotiations. Cramer asserts the market’s trajectory hinges on the President’s next move, predicting a clearer picture by early next week. The possibility of a major market crash remains a significant concern.

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