Global Markets Stumble Ahead of Trump’s Tariff Deadline

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Stock markets across the world faced sharp declines on Monday as investor anxiety intensified ahead of U.S. President Donald Trump’s planned tariffs, which are scheduled to take effect on Wednesday. The tariffs, aimed at countering foreign trade barriers and reviving domestic manufacturing, have sparked fears of rising inflation and a potential global economic slowdown.

In the United States, the S&P 500 slipped 0.6% after recovering slightly from an early 1.7% plunge. With a quarterly decline nearing 6%, the index is on track for its worst first-quarter performance in nearly three years. The Nasdaq Composite, more sensitive to shifts in tech valuations, dropped 1.6% as shares in Tesla, Nvidia, and other leading technology firms retreated sharply. Meanwhile, the Dow Jones Industrial Average managed a modest gain of less than 0.1%, reflecting cautious investor sentiment.

Sell-Off Extends from Asia to Europe

The negative sentiment was not limited to Wall Street. Asian and European markets mirrored the decline, reflecting the global scale of concern over the economic impact of the looming tariffs. Japan’s Nikkei 225 plunged by 4.1%, while Hong Kong’s Hang Seng Index and China’s Shanghai Composite Index also recorded significant losses.

European indices followed suit, with London’s FTSE 100, Paris’ CAC 40, and Frankfurt’s DAX each falling more than 1%. The widespread downturn highlights the interconnectedness of global markets and the apprehension surrounding protectionist trade policies.

The uncertainty stems from the lack of clarity about the scope and scale of the tariffs, which are expected to be detailed on Wednesday. While the Trump administration claims the move is intended to level the playing field for American exporters, critics warn it could trigger retaliatory measures from other countries and disrupt international trade.

As investors brace for potential fallout, markets are likely to remain volatile until further policy details are unveiled, leaving economies and equities worldwide on uncertain footing.