Stock markets continued to experience sharp declines globally on Monday as President Donald Trump ignored warnings that his trade policies could cause significant economic harm, likening new US tariffs to “medicine.” The S&P 500 plummeted an additional 4.1%, entering bear market territory after a slide of more than 20% from its peak in February, while the Dow Jones industrial average fell 4.2%. In London, the FTSE 100 dropped 4.3% following a 7.8% slump in Tokyo’s Nikkei 225.
Trump, who has previously used market rally performance as a measure of his success, attempted to downplay the market downturn over the weekend, stating, “I don’t want anything to go down. But sometimes you have to take medicine to fix something.”
Despite the setback, Trump maintained a firm stance on Monday, pleading on his Truth Social platform, “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid!” Major stock indices have experienced drastic declines since the controversial announcement to revamp the US economy last week, with the Trump administration implementing a 10% tariff on imported goods and planning to introduce higher tariffs on specific nations from Wednesday.
Although corporate executives have been hesitant to criticize Trump since his inauguration, some have started to raise concerns. JPMorgan Chase CEO Jamie Dimon warned that Trump’s tariff plan is “likely” to worsen inflation. “Whether or not the tariff menu causes a recession is uncertain, but it will definitely slow down growth,” he stated in his annual letter to shareholders.
Billionaire fund manager Bill Ackman, who once supported Trump’s presidential campaign, has also urged the administration to reconsider its plan, noting, “We are heading for a self-induced economic nuclear winter.”
Oil prices faced downward pressure with Brent and WTI benchmarks reaching their lowest levels in four years amid growing economic tensions between Washington and Beijing, increasing concerns of a global economic downturn impacting demand.
Source: https://www.theguardian.com/business/2025/apr/07/stock-market-dow-jones-sp-ftse-trump-tariffs
