U.S. President Donald Trump's recent announcement of sweeping "reciprocal tariffs" on nearly all trading partners has ignited global trade tensions, triggering a sharp sell-off in U.S. stocks. As markets reeled from the policy shift, White House trade adviser Peter Navarro attempted to calm investors during a Fox News interview on April 6, controversially stating that if people don't sell your stocks, they won't lose money.
The tariff decision, unveiled on April 2, has drawn fierce criticism from economists and financial institutions. Goldman Sachs warned in a report on April 6 that the negative effects of the tariffs are just beginning to materialize, predicting they will both hurt U.S. economic growth and accelerate inflation. The investment bank cautioned that the recent market plunge may not yet have bottomed out.
Market analysts have been particularly scathing in their assessments. Some experts have labeled Trump's tariff move as "the worst policy mistake in 95 years," while JPMorgan analysts projected on April 4 that the measures could push the U.S. economy into recession this year. The Dow Jones Industrial Average has suffered multiple steep declines since the announcement, reflecting growing investor anxiety over the potential for a full-blown global trade war.
The escalating trade tensions come as the Trump administration seeks to rebalance what it views as unfair trading relationships. However, the aggressive approach has raised concerns among allies and trading partners worldwide, with many threatening retaliatory measures that could further destabilize global markets.
Related News:
Editor's Pick | Great Depression 2.0? Crazy stock market and Smoot-Hawley Tariff Act
Comment