Countries across the globe threatened retaliatory action against the United States after President Donald Trump announced sweeping new tariffs, sparking fears of a global trade war and economic slowdown. The Wednesday announcement, described by Trump as “Liberation Day,” imposed steep levies on dozens of countries, including 20% on European Union goods, 24% on Japan, and a cumulative 54% on imports from China.
The move triggered a sharp sell-off in global financial markets and drew criticism from world leaders confronting the unravelling of decades of trade liberalisation. Economists warned the tariffs would drive up prices for consumers and increase the risk of a global recession.
China’s vow to impose countermeasures further heightened concerns about a tit-for-tat escalation. Investment bank JP Morgan has also raised its estimate of the likelihood of a global recession this year from 40% to 60%, citing the scale and scope of the tariffs.
Trump tariffs spark $2.5 trillion market meltdown
Trump’s policies triggered massive selloffs in global stock markets, as investors pulled out of shares in industries expected to be hit hardest by the new measures.
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