
The US stock market fell more than 5 percent on Friday due to the reciprocal tariffs imposed by Donald Trump. Major indices like the Dow Jones, S&P 500 and Nasdaq suffered heavy losses as investors feared a global economic slowdown.
Big drop in stock markets
The Dow Jones index fell by more than 5.50 percent, which was one of its biggest declines. The S&P 500 declined by nearly 6 percent, while the Nasdaq saw a loss of 5.73 percent. According to banking and market expert Ajay Bagga, “The US markets have lost $9 trillion of market cap since Trump was sworn in.”
The impact of adverse tariffs on the economy
A report by Ask Private Wealth said these tariffs could increase uncertainty in the US economy and possibly lead to stagflation (inflation in the midst of a recession) in the US. The report warned that this move could push trade barriers to 1800s levels.
Impact on global markets
Trump's adverse tariffs had an impact on markets across the world. Britain's FTSE 100 index fell by 4.95 percent, while Germany's DAX performance index also closed down by 4.95 percent. India's stock markets also did not escape this impact and Sensex and Nifty fell.
Impact on markets in India
In India, the Sensex closed at 75,364.69 points, showing a decline of 930.67 points or 1.22 percent. While the Nifty closed at 22,904.45 points, down 345.65 points or 1.49 percent. At one point, the Sensex fell by 1,000 points, but later some losses were reduced.
Trump's trade policy
The Trump administration has increased tariffs on trading partners in its second term under the "Fair and Reciprocal Plan". President Trump has made it clear that the US will match tariffs imposed by other countries to maintain parity in trade, including India.
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