Market Bloodbath After New Trump Threat Keeps World on Edge
Global Market Meltdown After Trump Plots Tariffs on All Imports: ‘No One Knows What the F*** is Going on’
Global markets plunged Monday as President Donald Trump prepared to unveil plans for a sweeping 20 percent tariff on all imports, sending investors fleeing to safe-haven assets like gold, which surged to record highs.
The Dow futures crashed by more than 270 points (0.7 percent), while the S&P 500 continued its brutal rout from Friday, plummeting 1 percent before the opening bell.
The tech-heavy Nasdaq took an even harder hit, dropping 1.4 percent – equivalent to a staggering $400 billion in market value wiped out.
https://twitter.com/olalatech1/status/1906632628146405817?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1906632628146405817%7Ctwgr%5Ecc7fa7eff9b67698836ee6677326335dda6d7d70%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.digifection.com%2F2025%2F03%2F31%2Fmarket-bloodbath-after-new-trump-threat-keeps-world-on-edge%2F
The mood inside the White House ahead of what some are calling “Liberation Day” is reportedly tense. Trump appears poised to ignore advice from Vice President J.D. Vance, Chief of Staff Susie Wiles and Treasury Secretary Scott Bessent, who pushed for smaller, more targeted tariffs or at least a structured rollout allowing businesses to prepare.
Behind closed doors, administration officials are reportedly deeply concerned. “No one knows what the f*** is going on,” one White House ally close to Trump’s inner circle told Politico.
Trump's policy is to introduce huge 20% tariffs on foreign goods to "protect American factories and production".
— Carol Vorderman (@carolvorders) November 6, 2024
America is our biggest export market so when that happens….
It's remarkable how right wing hatred of others is bigger than the damage they will do to their own pic.twitter.com/CgvHmzAeym
Asian and European markets felt the shockwaves first, the Daily Mail reported.
If Trump follows through on all his remaining tariff threats, tariffs on U.S. imports could hit 18% on average – The Wall Street Journal.
— NextGen News (@NXGenNews) March 25, 2025
Based on a sample of global markets, the effective U.S. rate would be the highest of any country in 20 years. pic.twitter.com/XLOa6x4VPy
Sources familiar with the plan indicate Trump’s advisers are considering far-reaching global tariffs of up to 20 percent that would affect virtually every U.S. trading partner with minimal exemptions, per the Daily Mail. This approach aligns with what Trump initially promised on the campaign trail, though he later began promoting a reciprocal tariff system instead.
Under a reciprocal plan, the U.S. would charge other nations “what they charge us” to level the playing field. However, the Wall Street Journal reports that Trump now favors imposing “a clean number” on nations, instructing his team to make the policy “big and simple.”
The stock market’s downward spiral has sparked genuine fears of recession and further economic hardship for American households.
“For the first time in years, we find ourselves genuinely worried about risk assets,” said Ajay Rajadhyaksha, head of rates markets at Barclays.
“If policy chaos and trade wars worsen much further, a recession is now a realistic risk across major economies,” Rajadhyaksha added, per the Daily Mail.
The outlet further noted that Bruce Kasman, chief economist at JPMorgan, warned that recession risks have risen to a 40 percent probability amid concerns that aggressive U.S. policies could negatively impact business and household sentiment.
“With the latest tariff increases set to push U.S. core inflation above 4% next quarter, a household sector with a healthy balance will need to show a willingness to lower its saving rate to cushion this blow,” Kasman noted.
March has been particularly dismal for U.S. stocks, with the Nasdaq Composite tracking toward its biggest monthly decline since December 2022. Meanwhile, the S&P 500 has slumped 6.3 percent, putting it on course for its worst month since September 2022.
Trump announces he plans to impose a 20% tax on all imported goods, including food, clothes, and cell phones: “Tariffs… it’s my favorite word” pic.twitter.com/gUSfkZWiHj
— Kamala HQ (@KamalaHQ) October 20, 2024
Some Trump aides reportedly hope the president’s fondness for strong stock market performance might steer him away from his most extreme plans. However, a source close to Trump’s inner circle, according to the Daily Mail, countered this notion, saying: “The president isn’t looking at it like they are. If the economy tanks, then fine, the economy tanks – because the president truly believes that it will rebound and the countries will give in.”
Economists fear the tariffs would be passed along to consumers through higher prices for cars, groceries, housing and other goods. Corporate profits could decline, and economic growth might slow. While Trump maintains that more companies would open factories to avoid the tariffs, experts note that process could take years.
The Daily Mail noted that Trump has publicly dismissed concerns about rising prices resulting from his policy. When NBC News asked about potential price increases on foreign cars after a proposed 25 percent tariff on auto imports, Trump responded, “I couldn’t care less. Because if the prices on foreign cars go up, they’re going to buy American cars. I hope they raise their prices, because if they do, people are going to buy American-made cars. We have plenty.”
Am always curious when a news organization makes a big deal of a snippet of a quote. I can't find the video, but NBC sent out a transcript, and Trump's point was that if tariffs raise prices of foreign-made cars, he'll be happy when Americans buy more American-made cars: https://t.co/g8UiONn7RX pic.twitter.com/gcMh1t64LA
— Byron York (@ByronYork) March 30, 2025