Global markets reeled this week after former U.S. President Donald Trump declined to dismiss the possibility of a recession linked to his proposed tariffs, triggering a historic $1.7 trillion loss in U.S. stock value. The comments, made during a Fox News interview, have sparked concerns among investors and analysts about escalating trade tensions between the U.S. and China.
The Nasdaq 100 plummeted 3.81% on Monday — its steepest single-day drop since 2022 — while the S&P 500 fell 2.7%, erasing gains from earlier this year. Tech stocks bore the brunt of the sell-off: Tesla shares crashed 15.4%, their worst decline since 2020, while Nvidia, Alphabet, and Meta each fell between 4% and 5%.
Trump’s remarks underscored his trade policy priorities when asked about recession risks. “I hate to predict things like that,” he said, emphasizing his focus on “building a strong country” rather than tracking market performance. Analysts note that such rhetoric signals a potential doubling-down on tariffs targeting the Chinese mainland, a strategy critics argue could destabilize global supply chains.
The volatility has raised alarms across Asia-Pacific markets, where exporters and manufacturers remain heavily reliant on stable U.S.-China trade relations. With Trump positioning tariffs as a centerpiece of his economic platform, business leaders fear prolonged uncertainty could deter investments in industries from semiconductors to renewable energy.
As markets brace for further turbulence, experts urge caution. “This isn’t just a Wall Street story,” said Singapore-based economist Liu Wei. “A protracted U.S.-China trade standoff risks collateral damage across emerging Asian economies already navigating inflationary pressures.”
