Panic Monday: Global market bleeds amid Trump’s tarriff

The global financial system was thrown into fresh turmoil on Monday April 7, 2025, as stock markets across major continents recorded sharp losses, sending a chilling reminder of the economic chaos of 2020.

In what traders have already dubbed “Panic Monday”, panic gripped investors following U.S. President Donald Trump’s renewed vow to raise tariffs on foreign imports, with rates ranging between 10% and 50%, triggering swift retaliatory action from China.

This latest twist in the tariff war rattled markets from Tokyo to Frankfurt, dragged down oil prices, and sent safe-haven currencies like the yen rallying, even as U.S. futures hinted at more losses ahead.

Markets Bleed Globally

Asia led the plunge, with Japan’s Nikkei 225 tumbling 7.8%, forcing a temporary halt in futures trading. Taiwan’s Taiex plummeted 9.7%, while Hong Kong’s Hang Seng suffered a staggering 13.2% blow.

China’s Shanghai Composite also fell 7.3%, underscoring the mounting fears of a global recession.

Europe was not spared. Germany’s DAX index initially crashed more than 10% before recovering slightly to end the morning down 5.8%. France’s CAC 40 mirrored the trend with a 5.8% drop, while the UK’s FTSE 100 sank 4.9%.

In the U.S., pre-market trading painted a grim picture. Futures for the S&P 500, Dow Jones Industrial Average, and Nasdaq dropped 3.4%, 3.1%, and 5.3% respectively, raising the spectre of the S&P entering bear market territory — defined as a fall of over 20% from its peak.

Friday’s rout had already shaken Wall Street, with the S&P shedding 6%, the Dow plunging 5.5%, and the Nasdaq dropping 3.8%. Analysts now warn that this is the worst crisis since the COVID-19 pandemic battered global markets in 2020.

Speaking aboard Air Force One late Sunday, Trump remained defiant, insisting the tariffs were necessary medicine for the U.S. economy.

He said, “I don’t want markets to fall, but sometimes you have to take medicine to fix something.”

The President’s position appeared to harden over the weekend, despite China’s retaliatory tariffs and growing global condemnation of the escalating trade war.

His stance has amplified fears that the economic standoff could spiral out of control, stalling global growth.

Analysts at Deutsche Bank observed: “There’s no sign yet that markets are finding a bottom and beginning to stabilize.”

Oil prices slumped alongside equities, with U.S. crude shedding $2.30 to settle at $59.69 per barrel.

Brent crude fell $2.33 to $63.25. The fall reflects anxiety that slower global trade will reduce energy demand, compounding the effects of OPEC+’s recent decision to raise production.

Currency markets also responded sharply. The U.S. dollar dipped to 146.24 yen, while the euro edged up to $1.0992.

The yen’s safe-haven status saw renewed investor interest, suggesting deepening risk aversion across markets.

While the meltdown is centred on developed markets, developing and trade-reliant economies are likely to feel the pinch harder.

Economists warn that countries like Nigeria heavily dependent on oil exports could suffer reduced revenue from falling crude prices and tighter financial conditions globally.

Gary Ng, a senior economist at Natixis, sounded the alarm: “Beyond the market meltdown, the bigger concern is the impact and potential crises for small and trade-dependent economies.”

Experts have predicted more volatility, with little hope for a quick resolution. Citi strategist Stuart Kaiser noted that “earnings estimates and stock values still don’t reflect the full potential impact of the trade war.

There is ample space to the downside despite the large pullback.”

The U.S. Federal Reserve may be forced to intervene to soften the blow by cutting interest rates, although Chair Jerome Powell has warned such moves might further stoke inflation fears.

With Trump showing no signs of retreating, investors, businesses, and governments are left hoping for eventual negotiation breakthroughs that may ease tensions.

Until then, the markets and economies — may remain caught in the crossfire.

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