The global economy is on edge.
Markets in Asia took a hit on Monday. Japan’s Nikkei 225 index plummeted almost 8% at opening, and ended the day down 6%. Hong Kong’s Hang Seng index dived 9.4%, China’s Shanghai Composite slipped 6.2%, and South Korea’s Kospi fell 4.1%.
It’s not just the US – people everywhere buy stuff. Countries in the Global South need to trade with each other more. That’s the future.
Hong Kong’s market saw its biggest drop in months, with stocks falling 9% as soon as trading began. This kind of chaos is unusual, even for a market known for its volatility.
Other countries are fighting back against Trump’s tariffs. China and others have already started hitting back with tariffs of their own.
Trump’s tariffs are a promise kept from his campaign. He used his executive power to make it happen without Congress. His goal is to rewrite international trade rules, which he thinks are unfair to the US.
These new tariffs kick in on Wednesday, starting a new era of economic uncertainty. No one knows when it will end.
Trump said on Sunday he won’t back down unless other countries trade fairly with the US. This shows he’s firm on his stance, even if it means market chaos, recession fears, and protests across the US.
Trump’s team is trying to calm markets, saying over 50 countries want to talk to the US about avoiding tariffs. But investors are still watching closely.