Global financial markets reeled this week as former U.S. President Donald Trump's proposed tariff policies fueled a historic sell-off, erasing trillions in market value. The Dow Jones Industrial Average plunged 4.7% on Monday alone—losses exceeding France's annual GDP—followed by further declines Tuesday as recession warnings intensified.
Analysts attribute the turmoil to investor skepticism over Trump's March 4 pledge to create "the greatest economy in history," with escalating trade tensions between the U.S. and major Asian economies like China and Japan driving risk-averse behavior. The selloff coincides with Trump acknowledging potential economic hardship for Americans while vowing to expand import taxes.
Market strategist Lin Wei-Ting noted: "The velocity of this correction reflects a perfect storm—trade wars, inflation anxieties, and geopolitical uncertainties. Asian markets face amplified exposure due to their export-driven economies." The MSCI Asia Pacific Index fell 3.2% midweek, with tech and manufacturing stocks hit hardest.
While U.S. officials maintain tariffs will strengthen domestic industries, IMF managing director Kristalina Georgieva cautioned that protectionist measures could reduce global GDP growth by 0.5% in 2024. Investors now await critical inflation data and signals from central banks as markets test 2024 lows.
