Wall Street kicked off the week with sharp losses following President Trump’s renewed push to raise tariffs on imported goods, intensifying fears of a global economic slowdown, reports the Associated Press. Monday’s market jitters followed steep declines last week and mirrored steep drops in European and Asian markets, with investors bracing for prolonged trade tensions and reduced global growth.
Futures for the S&P 500, Dow Jones Industrial Average and Nasdaq all sank in premarket trading, briefly pushing the S&P toward bear market territory before recovering some ground. Oil prices also dropped below $60 a barrel for the first time since 2021, signaling concerns about weakened demand amid a potential recession.
The sell-off was triggered by Trump’s announcement of sweeping new tariffs — ranging from 10% to 50% — on imported goods, along with retaliatory measures from China. The moves have drawn widespread criticism from economists and business leaders who warn the policies could drive up inflation, destabilize supply chains and stall growth. JPMorgan CEO Jamie Dimon cautioned in his annual letter that the new tariffs raise the likelihood of a recession, even if one isn’t inevitable.
International markets followed suit, with Japan’s Nikkei 225 falling nearly 8% and European indices tumbling — Germany’s DAX dropping over 10% at the open before clawing back some losses. Friday’s sharp declines on Wall Street marked the worst two-day performance since the early COVID-19 crisis, with the S&P 500 down 6%, the Dow off 5.5% and the Nasdaq falling nearly 4%.
Despite the market turmoil, Trump stood by his decision, telling reporters late Sunday that while he didn’t want to see the markets fall, the tariffs were necessary. He later blamed China and other nations for retaliating, framing the escalation as part of a necessary correction. Meanwhile, Federal Reserve Chair Jerome Powell signaled caution on interest rate cuts, noting that while they could offset some damage, they might also fuel inflation — complicating the path forward for policymakers.
