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Markets Reel as Trump's 'Liberation Day' Tariffs Approach

Global markets brace for sweeping 25% tariffs on imported vehicles and auto parts, set to begin April 3, amid escalating trade tensions and recession fears.

British Prime Minister Keir Starmer meets with U.S. President Donald Trump in the Oval Office at the White House on February 27, 2025 in Washington, D.C., U.S. Carl Court/Pool via REUTERS/File Photo
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A digital bill board flashes a tariffs message in Kennedy Township, Pa., Tuesday, March 25, 2025. (AP Photo/Gene J. Puskar)
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Overview

  • President Trump confirmed that the 25% tariffs will apply universally to all countries, aiming to generate $100 billion in revenue for the U.S. government.
  • The S&P 500 and Nasdaq are on track for their worst quarter since 2022, with investors reacting to fears of inflation, reduced consumer spending, and a potential recession.
  • Retaliatory measures from key trading partners, including Canada, China, and the EU, have escalated trade tensions, deepening concerns of a global trade war.
  • The auto industry faces significant disruption, with projected price increases of $5,000 to $10,000 per vehicle and sharp stock declines for major automakers like Volkswagen and Toyota.
  • U.S. consumer confidence has dropped to a 12-year low, reflecting growing anxiety over rising costs and economic uncertainty tied to the tariffs.