Mon Apr 07 02:04:34 UTC 2025: ## Global Markets Plunge Amid Trump’s Tariff War

**Tokyo/New York –** Global markets experienced a dramatic sell-off on Monday, following President Trump’s continued defense of his sweeping tariff policies. Asian markets opened with sharp declines, mirroring a negative outlook from US futures. The Nikkei 225 in Japan plummeted over 7%, while the Kospi in Seoul fell nearly 5%. Australia’s benchmark index dropped 6%, and Taiwan’s index plunged almost 10%. These losses follow a significant Friday decline and add to the trillions of dollars already wiped from global markets since the tariffs were announced.

President Trump, while acknowledging the market turmoil, insisted the economic pain was a necessary “medicine” and that many countries were eager to negotiate trade deals. He denied intentionally triggering the selloff, claiming he couldn’t predict market reactions and wouldn’t compromise unless trade deficits were addressed.

US futures pointed to further losses on Wall Street, with the S&P 500 futures down over 4% and Nasdaq futures down over 5%. The fear of a recession fueled a flight to safe havens, driving up Treasury futures and pushing down the dollar against major currencies like the yen and Swiss franc. Oil prices also fell significantly.

Analysts warn that the sustained impact of US trade policies could push the US and global economies into recession. JPMorgan’s Bruce Kasman estimates a 60% chance of a downturn and predicts multiple interest rate cuts by the Federal Reserve. Concerns are also rising about the inflationary impact of tariffs on consumer prices and corporate profit margins, particularly as earnings season begins. Goldman Sachs analysts anticipate negative revisions to profit margin estimates in the coming quarters.

CNBC host Jim Cramer warned of a potential “bloodbath” in global markets, drawing parallels to the 1987 Black Monday crash. The market’s direction, he stressed, hinges entirely on President Trump’s next move. The current situation reflects a deep investor uncertainty and anxiety surrounding the escalating trade war and its potential long-term consequences.

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