Once again, America’s stock markets find themselves embroiled in turbulence. Another day ended in losses, as President Donald Trump’s “reciprocal tariffs” cast a shadow over the global economic landscape. Change is afoot, and uncertainty lingers like a heavy fog.
On Friday, the final bell tolled for the Dow Jones Industrial Average, marking a decline of 5.5 percent. The Nasdaq Composite followed suit, slipping by 5.8 percent, while the S&P 500 spiraled downward nearly 6 percent. Together, these indices endured their most severe two-day decline since March 2020, harkening back to the challenging onset of the COVID-19 pandemic.
Echoes of market unrest resonated across the globe. Trump had announced reciprocal tariffs just days prior, on a Wednesday that many will not soon forget. These tariffs encompassed almost all trade partners, casting a wide net with benchmark tariffs set at 10 percent, and specific impositions skyrocketing to 50 percent on over 60 nations. An audacious move, indeed.
Al Jazeera’s Kristen Saloomey reported from the New York Stock Exchange, noting Friday’s plunge was exacerbated by China’s retort—a 34-percent tariff on US goods—the most significant counterpunch thus far. “This is all sparking fear of a global trade war and possible global recession, and that’s what we’re seeing play out here in the markets today,” Kristen observed.
Meanwhile, Trump chose a defiant path. At his Florida golf course, participating in the LIV Golf tournament, and having spent the night at Mar-a-Lago, his focus appeared unshaken. “To the many investors coming into the United States and investing massive amounts of money, my policies will never change,” he claimed assertively on Truth Social, his very own social platform.
A bright spot surfaced—a report unveiling that the US had added 228,000 jobs in March. Expectations were exceeded, yet this report was a snapshot from before the tariff announcement. “Hang tough,” Trump urged, “we can’t lose!”
Contrasting Trump’s relaxed demeanor, criticism arose. Senate’s top Democrat, Chuck Schumer, remarked on Trump’s “billionaire bubble,” while Democrat Senator Ben Ray Luján lamented, “While the American people are trying to put food on the table, I see that Donald Trump’s out there playing golf.”
However, Trump found allies in some Republicans. Senator John Barrasso acclaimed Trump as a “deal maker,” speculating he would negotiate “country by country.” But questions linger—are these relationships too fragile to endure such stress?
Warnings loomed large. Federal Reserve Chair Jerome Powell forecasted higher inflation paired with surging unemployment in light of Trump’s unforeseen tariff strategy. “We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation,” Powell declared solemnly to reporters.
The Fed’s swift intervention felt less promising. Even Trump’s plea for a timely rate cut found no traction. Powell remarked, it was too soon for the central bank to determine its course of action. The world had raised its eyes to the horizon, yet clarity remained out of reach.
The international community voiced their reactions to the unfolding tariff regime. From Europe, trade commissioner Maroš Šefčovič expressed discontent to US officials, describing the 20 percent tariffs on the bloc as “damaging” and without justification. “The EU/US trade relationship needs a fresh approach. The EU’s committed to meaningful negotiations but also prepared to defend our interests. We stay in touch,” he affirmed.
The United Nations, too, spotlighted the unease gripping developing countries in Africa and Southeast Asia. These nations, reliant on tariffs for government revenue, found themselves disproportionally afflicted. Countries like Lesotho, Madagascar, and Laos were notably burdened under these new economic constraints.
“Trade turbulence hurts the vulnerable and the poor,” echoed Rebeca Grynspan, Secretary-General of UN Trade and Development. With conviction, she continued, “Trade must not become another source of instability. It should serve development and global growth.”
As the ripples of these decisions spread, the world deliberated on the implications. What path will nations chart in response? Will it fortify unity or segment borders further?
Source: Al Jazeera and news agencies
Edited By Ali Musa
Axadle Times International–Monitoring
