After Trump announced tariffs on major countries, the value of US and global stock markets has fallen by $3 trillion, severely impacting the economy.
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The US stock market has suffered its biggest loss since 2020 after US President Donald Trump announced additional tariffs on goods imported into the US. The US Dow and S&P 500 stock market indices fell by 4 and 4.8 percent, respectively, according to CNBC. The Nasdaq Composite, which is dominated by technology companies, also fell by 6 percent.
All major companies and indices have fallen significantly since Wednesday. Major media outlets have reported that the total amount lost by investors in the US stock market, which has become volatile overnight, is around $3 trillion.
The impact of Trump's announcement on the US stock market has also been followed by other major stock markets around the world with trepidation. According to USA Today, on Wednesday, other major stock markets fell by an average of 4.5 percent due to the tariffs imposed by Trump on all major countries and the fear of a trade war and recession.
Britain's FTSE 100 fell by about 3.5 percent, Germany's DAX fell by 4.2 percent, France's 3.8 percent, Italy's 3.9 percent and Spain's stock index fell by 3.6 percent. In major Asian markets, Japan's Nikkei 225 fell about 5.1 percent, China's Shanghai Composite Index fell 6.3 percent and South Korea's Kapsi fell 4.8 percent. In other stock markets, Australia's share index fell 3.8 percent and India's Sensex fell about 4.5 percent, according to the New York Times.
The decline was seen to have affected the technology , retail trade and automotive sectors the most. Shares of technology companies such as Apple and Nvidia fell by 9 percent and 8 percent, respectively. Dollar Tree and Gap suffered heavy losses in retail trade. The share prices of these companies fell by 13 percent and 20 percent, respectively. The automotive sector has also been seriously affected. The share prices of companies such as Tesla, Ford and General Motors have fallen significantly. High-profile investors and business leaders have also been hit by losses. According to US News, Elon Musk lost $19 billion as Tesla shares fell 11 percent and Jeff Bezos lost $20 billion as Amazon shares fell 9 percent. Mark Zuckerberg lost nearly $34 billion as Meta shares fell 14 percent, while Google's Larry Page lost $20 billion, Dell's Michael Dell lost $20 billion, Warren Buffett lost $15 billion and Bill Gates lost $14 billion.
The market decline is expected to have a serious impact on the US economy, raising fears of a recession. Economists have warned that higher tariffs and potential retaliation from other countries could lead to a slowdown in economic growth, higher prices for American consumers and higher inflation.
'This is a move that could have significant implications not only for the US economy but for the global economy,' said Olu Sonola, head of US economic research at Fitch Ratings, adding, 'There is a strong possibility that many countries could go into recession.'
