The worst week for US stocks since 2020 has ended with a dismal start to the weekend as China hit back at US President Donald Trump’s tariffs, raising concerns about an extended trade war and its impact on global markets.
All three major US stock indexes plummeted more than 5%, with the S&P 500 falling almost 6% in its worst week since 2020. The UK’s FTSE 100 index also fell sharply, capping off a steepest decline in five years.
China responded to Trump’s tariffs by imposing its own import taxes of 34% on US goods, citing bullying and a violation of international trade rules. Other countries are weighing their options for negotiations with the White House.
US President Trump dismissed concerns about market shock, emphasizing that the US labor market remains strong. Analysts warn that Trump’s sweeping new tariffs could drive many countries into economic recession.
The Dow Jones fell 5.5%, wiping out almost a decade of gains since its February peak, while the Nasdaq dropped 5.8%. In Europe, France and Germany saw significant declines in their stock markets.
Some White House allies have begun to criticize Trump’s measures, with Republican Senator Ted Cruz warning about potential risks and consequences for American businesses.
Source: https://www.bbc.com/news/articles/cx26v8x24w1o