Global Markets in Turmoil as Trump’s Tariffs Spark Massive Sell-Off

Global markets are reeling from the shockwaves of US President Donald Trump’s aggressive tariff policies, with equity markets plunging into chaos. Trillions of dollars have been wiped out worldwide, and India’s stock indices have taken a severe hit, touching a 10-month low.

The BSE Sensex opened nearly 4,000 points lower, plummeting 3.5% in early trade to 71,425.01, while the NSE Nifty crashed over 1,000 points, falling to 21,743.65. The panic-driven sell-off, mirroring the carnage in Asian equities, comes amid concerns over Trump’s radical trade policies and looming recession fears.

Tariffs Shake Global Confidence

President Trump, undeterred by the market turmoil, defended his tariff hikes—some reaching as high as 50%—as necessary measures to rectify what he sees as unfair trade practices. India has been slapped with a 26% tariff, in addition to a baseline 10% duty applicable to all nations, raising fears among Indian exporters and traders.

“The global economy is on shaky ground. India's market is suffering not due to internal factors, but because of the domino effect in global portfolio flows. The country must act swiftly with fiscal and monetary measures to insulate itself from this economic winter,” said Ajay Bagga, a market analyst.

Asian Markets in Free Fall

The bloodbath extends across Asia, with major indices in China, Japan, Hong Kong, and Taiwan witnessing a massive sell-off:

• Shanghai Composite: Down 4% as China retaliates with 34% tariffs on US goods.

• Hang Seng (Hong Kong): Plunged over 10% in response to market panic.

• Nikkei (Japan): Dropped 6.5%, having earlier crashed over 8%.

• Taiwan’s stock index: Collapsed nearly 10%.

• Singapore’s market: Fell over 8%.

Adding to the jitters, US stock futures indicate Wall Street is bracing for significant losses when markets open on Monday.

Trump Stays Defiant as Fears of Recession Loom

Despite the turmoil, President Trump remained unmoved, likening his tariffs to a "medicine" needed to "fix something." However, market experts warn that his administration’s stance could push the global economy toward a recession.

“The market is in free-fall mode, breaking critical support levels. The Trump administration sees these tariffs as a victory, not a negotiation tactic. That’s a dangerous game,” cautioned Stephen Innes of SPI Asset Management.

As investors scramble for cover, all eyes are now on how governments and central banks respond to prevent further financial devastation.

Also Read: Trump Defends Tariff Plans Amid Market Turmoil: "Sometimes You Have to Take Medicine"