Trump Tariffs Trigger Global Market Turmoil
US President Donald Trump's tariffs announced on April 2 triggered a plunge in global financial markets and drew condemnation from world leaders. Japanese Prime Minister Shigeru Ishiba termed it a 'national crisis' as Tokyo's stock market faced its worst week in years on April 4. JPMorgan raised the probability of a global recession by year-end to 60%. Mixed messages from the White House left uncertainty about whether the tariffs were permanent or a negotiation tactic, with Trump asserting they provide negotiation leverage. The tariffs, the highest in over a century, could significantly increase prices for US consumers. Companies like Stellantis and General Motors announced layoffs and plant closures. Canadian Prime Minister Mark Carney announced countermeasures, stating the global economy had fundamentally changed. China and the EU vowed retaliation, while France's President Macron called for suspending US investments. Other trading partners, including Japan, South Korea, Mexico, and India, held off on retaliation for now. IMF Managing Director Kristalina Georgieva warned of significant risks to the global outlook due to the tariffs.