Global stock markets plummeted for a third consecutive session on Monday, with European and Asian markets posting sharp declines following the latest U.S. tariff announcements. The commodities market also took a hit, with gold dropping to a new low of $2,957 per ounce this week. Here’s a breakdown:
Japan’s Response to Trump’s Trade Policies
Japan has strongly warned about Trump’s tariff negatively impacting the global economy and free trade system while stating that “Japan will not sacrifice its domestic industries just to appease Trump.” Despite these tensions, Trump described a recent call with Ishiba as highly productive, suggesting optimism amid the standoff.
U.S.-EU Trade Tensions
President Trump pressed the European Union to buy more U.S. energy to reduce the trade deficit, dismissing the EU’s current tariff response as “not enough.” While the EU commission responds with a potential 25% tariff on US goods, which will take effect from May 16th.
U.S.-China Trade Conflict Escalates
Meanwhile, Trump escalated tensions with China, threatening an additional 50% tariff on Chinese goods if China does not retract its recent 34% tariff increase by April 8, 2025. The new U.S. 50% tariffs will begin on April 9.
U.S.-Iran Nuclear Tensions
Trump has taken a firm stance against Iran possessing nuclear weapons and warned of severe consequences if talks fail. He hinted at a potential direct meeting with Iran on Saturday, though details remain unconfirmed.
U.S. Economic Policy Outlook
- Trump on Inflation and the Fed: Trump claimed “there is no inflation” and urged the Federal Reserve to cut interest rates to boost the economy.
- Navarro’s Optimism: Trade Adviser Peter Navarro dismissed recession fears as “silly,” pointing to anticipated tax cuts as a growth driver, aligning with Trump’s economic vision.
