U.S. Tariff Shockwaves Spark $6.6 Trillion Market Crash

As of mid-April 2025, global financial markets are reeling under immense pressure following aggressive trade policy moves by the United States. President Donald Trump’s administration has enacted a sweeping 10% global tariff and a staggering 145% levy on Chinese imports. The immediate market response has been historic: U.S. stocks lost over $6.6 trillion in value in just two days, marking the worst two-day plunge in American history.

The decision, framed as a national security measure, has thrown international trade into disarray and ignited concerns about a wider economic downturn. The S&P 500 and Nasdaq indices have tumbled into bear market territory, signaling deep investor unease.

Investor Exodus as Dollar, Bonds, and Equities Sink

Wall Street’s trifecta — equities, the U.S. dollar, and Treasury bonds — all declined simultaneously, a rare and troubling phenomenon. The massive selloff indicates growing fears over Washington’s unpredictability, inflationary risks, and potential capital controls. Notably, analysts have begun warning that the dollar’s dominance as a global reserve currency could face structural challenges if confidence in U.S. financial policy continues to erode.

Major international investors are reconsidering their U.S. exposure, with concerns that the nation’s increasingly isolationist policies may lead to further instability. As The Wall Street Journal noted, the U.S. is no longer viewed as the “safe haven” it once was in global markets. (Read the WSJ analysis)

Global Fallout: China Strikes Back, Emerging Markets Falter

China responded swiftly, imposing tariffs of up to 125% on American goods. It has also ramped up diplomatic outreach to position itself as a more stable trade partner to developing nations. For countries like Bangladesh, which rely heavily on U.S. textile exports, the sudden drop in demand has created severe economic stress.

Meanwhile, Japan’s Nikkei 225 plunged 7% in a single session, triggering emergency circuit breakers. European markets have not been spared either — the FTSE 100 and STOXX 600 indices also saw multi-day declines. Industry-specific sectors are facing intense scrutiny: pharmaceutical giants like AstraZeneca and GSK saw stock dips amid fears of supply chain bottlenecks due to looming tariffs on healthcare goods.

The tech sector, temporarily spared, also remains at risk. Companies like Apple and Nvidia saw volatile swings after indications that exemptions on electronics could soon be lifted. (Full report from The Times)

Former U.K. Prime Minister Gordon Brown has called for coordinated international monetary and fiscal responses to prevent a prolonged global recession. In his remarks, Brown criticized Washington’s “weaponization of trade” and urged G7 central banks to consider synchronized rate cuts. (Guardian coverage)

With volatility gripping markets, investors and governments alike are bracing for what could be the beginning of a new era of economic fragmentation.