Markets and Oil Prices Plunge as Trump Stands Firm on Tariffs
LONDON: Global financial markets suffered massive losses on what is being dubbed another “Black Monday,” as oil prices and stock markets nosedived. The sell-off was triggered by intensifying concerns over a global economic downturn, worsened by U.S. President Donald Trump’s unwavering stance on tariffs.
Markets around the world extended last week’s sharp declines. Just before Wall Street opened, Trump urged Americans to “be strong, courageous, and patient,” yet the market responded with an immediate drop of more than 3%.
U.S. markets experienced wild swings — briefly climbing on speculation about a potential 90-day delay in tariff implementation — but quickly reversed those gains when the White House dismissed such reports. In recent days, global markets have lost trillions of dollars in value.
Hong Kong’s stock market recorded a staggering 13.2% drop, its worst single-day performance in nearly 30 years. Taipei’s market plummeted by 9.7%, setting a record for its biggest one-day loss.
Japan’s Nikkei index also tumbled, closing nearly 8% lower. In Europe, Germany’s Frankfurt exchange plunged 10% early in the day before recovering slightly to end with a 4.1% loss.
Cryptocurrency markets were not spared either — Bitcoin dropped 5.5%, hitting its lowest point in 2025. Meanwhile, the U.S. dollar rebounded after suffering losses last week.
The financial bloodbath hit every sector — from tech companies and banks to auto manufacturers, casinos, and energy firms — as investors fled risky assets.
Oil prices sank another 2%, reaching their lowest levels in nearly four years. With crude prices having already fallen 11% the previous week, Monday’s losses pushed benchmarks toward their weakest closes since April 2021.
Thomas Mathews, Head of Asia Pacific Markets at Capital Economics, said, “The global equity market downturn has intensified.”
A new 10% universal import tariff introduced on Saturday added to the chaos. Starting Wednesday, higher tariffs will impact a wide range of countries — including 34% duties on Chinese products and 20% on goods from the European Union.
In response, China announced it would impose a 34% tariff on U.S. imports beginning Thursday. Trump countered by threatening an additional 50% tariff on Chinese goods unless Beijing pulls back.
Any hope that Trump might soften his stance due to the market chaos faded on Sunday, when he declared no trade deals would happen unless America’s trade deficits were addressed.
On Monday, Trump reiterated his hardline approach, tweeting, “Don’t be Weak! Don’t be Stupid!… Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
He likened the market correction to taking “medicine to fix something,” emphasizing that short-term pain is necessary for long-term gain, even as millions of Americans see their retirement savings eroded.
In a message to shareholders, JPMorgan Chase CEO Jamie Dimon warned that the tariffs are likely to fuel inflation. He added that while a recession isn’t certain, the tariffs would “definitely slow economic growth.”
With first-quarter earnings season underway, analysts expect many companies to revise their outlooks — a move that could add to investor anxiety.
