Trump Tariffs Wipe Trillions Off Global Stock Markets

President Trump’s sweeping tariffs have caused upheaval in global financial markets, resulting in a dramatic reduction of over $2 trillion from the S&P 500 index. Notably, major US tech and consumer companies were among the hardest hit, with firms like Apple witnessing losses exceeding $300 billion in value.

The turmoil escalated further with the FTSE 100, the UK’s flagship share index, recording a 1.6% drop, marking its worst trading day since August 2024. European and Asian markets similarly experienced declines, as investors grappled with the uncertainties surrounding these trade policies.

Business leaders in the UK expressed concerns about potential retaliatory measures, indicating that further tariffs could disrupt supply chains and hinder investment. This sentiment reflects a widespread fear that escalating trade tensions may lead to an economic downturn, with some experts predicting the UK could face zero growth next year.

In response to these circumstances, UK officials are preparing possible countermeasures, including a comprehensive list of over 8,000 products that may be subject to retaliatory tariffs. The government hopes to negotiate a resolution with the US to alleviate these trade barriers, reinforcing their commitment to maintaining economic stability.

Economic analysts note that the situation is precarious, with the National Institute of Economic and Social Research highlighting a significant risk of recession in the UK amid the uncertainties created by the tariffs. UK Prime Minister’s government is optimistic about negotiations but acknowledges that achieving a favourable deal may take time and is not guaranteed.

The unfolding events serve as a stark reminder of the interconnected nature of global economies. Business leaders across sectors are calling for dialogue rather than escalations, understanding that the stakes involve not just profits but also the stability of international markets.