Global stock markets experienced a significant downturn, marking the worst week for US stocks since the 2020 Covid crash. This decline followed China’s response to tariffs imposed by US President Donald Trump, escalating concerns about an extended US China Trade War Impact on the global economy.
All three major US stock indexes plummeted, with the S&P 500 nearing a 6% drop, the largest weekly fall in years. The UK’s FTSE 100 also saw its steepest decline in five years, mirroring drops in Asian and European markets.
Despite the market turmoil, Trump downplayed concerns, citing a strong US labor market. He urged supporters to “Hang tough.” However, the global stock market has seen trillions in losses since the announcement of new US import taxes on goods from numerous countries, including key partners like China and the EU. Analysts suggest these moves represent the largest US tax increase since 1968 and could lead to trade contraction and potential recession in multiple nations.
China retaliated by imposing 34% tariffs on US goods, limiting mineral exports, and blacklisting American firms. China described these US actions as “bullying” and a violation of international trade rules.
Other nations, like the EU, are hoping for negotiated settlements. Maroš Šefčovič, the EU trade commissioner, expressed the need for a “fresh approach” after discussions with US officials, emphasizing the EU’s commitment to negotiation while also being prepared to defend its interests.
For further information on global trade regulations, you can visit the World Trade Organization (WTO). To understand the US perspective on trade policy, refer to the U.S. Trade Representative. Details on China’s trade policies can be found at the China’s Ministry of Commerce.