Global stock markets experienced significant declines on Monday, April 7, 2025, after President Donald Trump announced the implementation of extensive "reciprocal" tariffs. The move has intensified fears of a global economic slowdown and potential recession.​
Asian Markets Hit Hard
In Asia, major indices suffered steep losses:​
- Hong Kong's Hang Seng Index dropped over 13%, marking its worst performance since 1997.​
- China's CSI300 and Shanghai Composite both declined around 7%.​
- Japan's Nikkei fell by 7.8%.​
- South Korea's KS11 decreased by 5%.​
- India's Nifty 50 lost 4%.​
European Markets Also Affected
European markets were not spared:​
- Germany's DAX fell over 6%.​
- The Stoxx 600 declined by 5.3%.​
Defense and banking stocks faced particularly severe impacts.​
U.S. Markets Brace for Impact
U.S. futures markets reacted negatively, with S&P 500 and Nasdaq futures falling nearly 5% and 5.7%, respectively. This follows last week’s $6 trillion in market losses.​
Global Response and Economic Concerns
China has criticized the tariffs, asserting it will protect its rights, while Germany's economic minister suggested Europe is better positioned to manage the fallout. Economists warn that these tariffs could push the global economy into recession, with JPMorgan estimating a 60% risk of downturn. The Federal Reserve is now expected to begin aggressive rate cuts, possibly reducing rates to 3% by January.​
These developments underscore the escalating trade tensions and their profound impact on global financial markets.