Particle.news
Download on the App Store
239 ARTICLES
·
3w ago

U.S.-China Trade War Escalates as Markets Reel from Historic Losses

Trump's sweeping tariffs and China's retaliation trigger $6 trillion market wipeout, recession fears, and global economic uncertainty.

A trader works on the floor of the New York Stock Exchange April 4, 2025, in New York. Wall Street stocks suffered another bruising sell-off April 4, as major indices slumped more than five per cent following President Donald Trump's aggressive tariff policies.
A screen shows the Dow Jones Industrial Average after the close of trading on the floor at the New York Stock Exchange (NYSE) after the closing bell in New York City, US, April 4.

Overview

  • President Trump imposed a 34% tariff on Chinese imports, marking the steepest U.S. tariff rates in over a century, prompting swift retaliation from China with matching tariffs and rare earth export restrictions.
  • The U.S. stock market suffered its worst two-day drop since the COVID-19 pandemic, with the S&P 500 down 10.5% and the Nasdaq entering bear market territory.
  • Over $6 trillion in market value has been erased globally, with major sectors like technology and manufacturing experiencing heavy losses.
  • Economists, including JPMorgan, have raised the likelihood of a U.S. recession to 60%, citing inflation risks, slowed growth, and trade disruptions.
  • Trump defended the tariffs as essential for economic reform, while global leaders and economists warn of long-term damage to trade and economic stability.