The Global Market Meltdown: A Response to US Tariffs
- Stock experiencing significant dip: Dax sees 10% decrease
In a rollercoaster ride for global investors, international stock markets have been on a downward spiral in the aftermath of the extra tariffs incurred by the US. On a noteworthy day at the stock market, the German DAX reported a staggering drop of around ten percent, diving more than 2,100 points to 18,489 points. A brief relief was seen later, as the German stock market barometer bounced back to 19,000 points. Asian stock markets had already taken a hit earlier.
The US-EU trade war remains unabated, with no sign of a truce in sight. While US President Donald Trump has hinted at entering negotiations under certain conditions, his trade ambassador Howard Lutnick previously declared the US government's steadfastness with high import duties on goods from almost all nations.
The EU trade committee will gather in Luxembourg (11:00 AM) to brainstorm strategies to persuade Trump to relent on the tariffs.
The DAX had already suffered losses on the previous two days, resulting in a weekly loss surpassing eight percent. This marked the most significant weekly loss since the 2022 Russian invasion of Ukraine.
In Tokyo, the Nikkei index, consisting of 225 stocks, closed at a 7.83 percent decline, settling at 31,136.58 points. Earlier in the day, the Japanese leading index tumbled by nearly 9 percent to 30,793 points, reaching its lowest ebb since autumn 2023.
The Chinese markets were closed on Friday due to a holiday. However, on Monday, the CSI-300 index of major Chinese mainland stocks dipped by 7.8 percent just before the market closed. The Hang Seng index in the Chinese special administrative region of Hong Kong dove by 11.5 percent.
- Stock Market Volatility
- DAX
- Donald Trump
- Trade War
- US-EU Conflict
- Europe
- Asia
- CSI-300
- Hang Seng Index
- The community policy should address the ongoing volatility in the global stock market, a response to US tariffs, as seen in the DAX's steep decline in Germany and the CSI-300's dip in China.
- Employment policy should be reviewed in light of the US-EU trade war, as the tariffs might lead to job losses due to thefallen Nikkei index in Japan and the CSI-300 index in China.
- In an effort to prevent further thaw in the global economy, the EU trade committee has scheduled a meeting to discuss strategies for persuading President Donald Trump to reconsider the imposed tariffs, aiming for a more stable employment policy in both Europe and Asia.
