United States stock markets experienced a significant downturn on Monday following concerns that President Donald Trump’s tariff policies may be the catalyst for a recession in the world’s largest economy. The S&P 500 underwent a decline of 2.7 percent and a 9 percent fall from its all-time high reached in February. The tech sector was particularly affected, with the Nasdaq-100 shedding over $1 trillion in value as investors sold out of top tech stocks such as Alphabet, Amazon, Apple, Microsoft, Meta, Nvidia, and Tesla.

The uncertainty surrounding Trump’s repeatedly changing tariff announcements has rattled investors, leading to fears of a major economic slowdown. His back-and-forth decisions have included imposition of a 25 percent tariff on imports from Mexico and Canada, which he has now delayed until April 2. Additionally, Trump is expected to impose a global tariff regime starting April 2, where every country will face the same tariff as it imposes on US goods. The tariffs will likely increase inflation, leading to higher costs for American consumers, reduced growth, and an increase in unemployment. Public sector cuts and geopolitical tensions are further exacerbating the volatility in the US economy.

Source: https://www.aljazeera.com/news/2025/3/11/why-trumps-tariff-chaos-sparked-stock-market-meltdown-and-recession-fears?traffic_source=rss