The global market rout sparked by US President Donald Trump’s tariffs deepened in Asia and Europe on Monday, with the US bracing for a further slump when its markets open shortly.
Although the president has doubled down on his trade policy, members of his administration failed to offer a coherent message about his strategy over the weekend. Some of Trump’s billionaire backers are now calling for a return to freer trade.
Here’s what you need to know:
• Asian markets plummet: With trading now over for the day, Hong Kong’s benchmark Hang Seng index closed 13.2% down – its worst day since 1997. The city’s financial markets had been closed Friday for an annual festival.
• Europe also slumps: Stocks indexes in Europe are down around 5% halfway through the day’s trading. Meanwhile, European Union trade ministers are meeting in Brussels to discuss a response to Trump’s tariffs.
• US markets set to open: If the US stock market closes in bear territory – a drop of 20% from a recent peak – it would be the earliest in a new administration that a bull market has turned into a bear market in the history of the S&P 500, which dates back to 1957.
• Dimon sounds alarm: JPMorgan Chase chief Jamie Dimon has warned that Trump’s tariffs could raise prices, tip the global economy into recession and weaken America’s standing in the world by tearing up its alliances.
• Trump doubles down: After his trade policy wiped trillions of dollars off global markets last week, Trump told reporters late Sunday that he doesn’t want “anything to go down,” but that “sometimes you have to take medicine to fix something.” On Monday morning, Trump defended his policy in a Truth Social post, saying tariffs would bring in billions of dollars in revenue.
• Musk breaks rank: Elon Musk has said he would be in favor of a “zero-tariff situation” between the US and EU, after the man he helped elect as president imposed a 20% tariff on the bloc. Bill Ackman, another of Trump’s billionaire backers, has also criticized the president’s trade policy.
• MAGA’s mixed signals: Top Trump administration officials offered mixed messaging over whether countries can negotiate their way out of tariffs, or if the levies are here to stay. Larry Summers, former Treasury Secretary under Barack Obama, said the administration “doesn’t have a coherent message on why it’s implementing the largest tax increase” seen in the US in 50 years.
From Nikkei to Hang Seng, Asia’s markets have tumbled after Trump’s new tariffs were announced, which has countries like Japan and South Korea concerned about the short to long-term effects. #CNN #News #Japan #China #SouthKorea