Livestream: "Catastrophic Monday"? The potential fallout of Trump's unyielding tariffs
- Trump ponders potential temporary tariff exemption
Written by Frank Duvane, Phil Gomez, Yannik Schultz, and Lennard Worwood
Looks like "Catastrophic Monday" might be a relevant term after "Black Friday". It seems the market turmoil isn't just a product of our collective imaginations. With the additional tariffs implemented by the US, global markets have dipped deep into a nosedive. Monday's trading was particularly brutal, with the German stock market (DAX) plunging approximately 10%. In the first few minutes of trading, the DAX dropped a staggering 2,100 points, falling to 18,489 points, only to rebound slightly, reaching 19,000 points again. Asian stock markets had already taken a hit before the trading day began.
oh, and the cryptocurrency Bitcoin took a beating, too, below the 70,000-point mark.
DAX takes a tumble - No signs of a truce between the US and EU anytime soon
There's no sign of a compromise in sight in the escalating trade war between the US and EU. US President Donald Trump has hinted at negotiations under certain terms, but his trade representative, Howard Lutnick, has previously declared the US government's steadfast stance on imposing high import duties on goods from virtually all countries. The stock markets in China were closed on Friday due to a national holiday. On Monday, the CSI-300 index, representing the most crucial Chinese mainland stocks, drooped by 7.8% before market close. The Hang Seng index, which represents the Chinese special administrative region of Hong Kong, plummeted by 11.5%.
Trade wars, panic, and Bitcoin
- Global market volatility: The current unrest in the financial markets can be attributed to the aggressive trade policies and steep tariffs imposed by the US, causing widespread uncertainty and panic-selling across major indices[1][2].
- Bitcoin and market correlations: The performance of Bitcoin tends to follow the trend of broader markets, particularly during times of economic turmoil, as it can be perceived as a speculative asset or a "call option" on traditional markets like the NASDAQ[3].
In short, while specific updates on a "Catastrophic Monday" directly related to a US-EU trade conflict were scarce, recent global market volatility can be linked to broader trade issues and policy changes. As the trade situation continues to evolve, its impact on key indicators like the DAX and Bitcoin will be crucial to monitor.
[1] https://www.reuters.com/article/us-global-stocks/asian-stocks-dive-as-us-china-trade-war-escalates-idUSKCN1SN123[2] https://www.cnbc.com/2025/04/02/us-stocks-open-lower-as-trade-worries-weigh-on-markets.html[3] https://www.investopedia.com/terms/b/bitcoins-impact-on-stock-market.asp
- I'm not going to be a big fan of this escalating trade war between the US and EU, as it seems to be causing global market volatility and panic-selling across major indices.
- The performance of Bitcoin these days tends to follow the trend of broader markets, especially during times of economic turmoil, making it a speculative asset or a "call option" on traditional markets like the NASDAQ.
- Monday, dubbed as "Catastrophic Monday", was particularly brutal for the German stock market (DAX), with it plunging approximately 10%, and rebounding slightly, only to reach 19,000 points, as the tariffs imposed by the US seem to have pushed global markets into a nosedive.
