Global markets have plunged again, worsening fears of a worldwide trade war sparked by US President Donald Trump’s sweeping tariffs. Trump returned to the White House on Sunday as he said tariffs were the ‘medicine’ for the U.S. economy.
He said: “I don’t want anything to go down, but sometimes you have to take medicine to fix something."
“Our country will be solid and strong again.”
In Europe, markets opened sharply lower on Monday. Britain’s FTSE 100 dropped 241.88 points – or 3% – within minutes, Germany’s DAX fell by 7.6%, while France’s CAC 40 was down 7%.
Markets across Asia tumbled too, with Japan’s Nikkei dropping over 8% shortly after opening. China’s Shanghai Composite was down 6.7%, Taiwan’s Taiex plunged 9.7%, South Korea’s Kospi fell 4.8%, and Australia’s ASX 200 dropped as much as 6.3% in early trade.
Meanwhile, in America, CNN’s market index shows “extreme fear” is gripping Wall Street, with markets set to open sharply lower on Monday.
The S&P 500 is teetering on the edge of a bear market (a market in which share prices are falling, encouraging selling) raising alarm for investors and the wider economy.
Despite the turmoil, the tariffs won’t be lifted any time soon.
Harold Lutnick, U.S. Secretary of Commerce, told CBS News: “There’s no postponing, they’re definitely going to stay in place.”
He said, “The President needs to reset global trade”
ITV News Reporter Fred Dimbleby has the latest.
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