Worst Week for US Stocks Since COVID Crash China Tariffs

Post by: Pratik Kumar

Photo : Reuters

Stock market problems grew worse on Friday as China fought back against tariffs announced by U.S. President Donald Trump. This raised fears that the trade war between the two countries could last longer and harm the global economy.

Stay informed with the latest news. Follow DXB News Network on WhatsApp Channel  

All three major stock indexes in the U.S. dropped by more than 5%. The S&P 500, which is one of the main U.S. stock indexes, fell by nearly 6%. This marked the worst week for the U.S. stock market since 2020.

In the UK, the FTSE 100 index also fell by almost 5%, its biggest drop in five years. Asian markets dropped, and European markets in France and Germany also had big losses.

President Trump didn’t seem worried about the market drops. He said that the U.S. job market is strong and asked his supporters to "hang tough" and said, "We can't lose."

The stock market has lost trillions of dollars in value since Trump announced new tariffs of 10% on goods from many countries, including China, the European Union, and Vietnam. These tariffs make products more expensive for U.S. consumers, and many countries are worried that this could lead to less trade and cause recessions in their economies.

On Friday, China responded by putting its own taxes on U.S. goods, making them 34% more expensive. China also reduced exports of some important minerals and added American companies to its blacklist. China said Trump’s actions were "bullying" and against international trade rules.

Other countries, like those in the European Union, still hope to make deals with the U.S., but the White House has sent mixed signals about wanting talks. Maroš Šefčovič, the EU's trade commissioner, said on Friday that there had been a "frank" two-hour talk with U.S. officials. He said the EU wants a "fresh approach" to trade and is ready to protect its own interests.

Trump's tariff plans are similar to promises he made during his election campaign, but many people were surprised by how big these actions were. The results have been fast and bad, with this being the worst week for U.S. stocks since 2020 when the COVID-19 pandemic caused global problems.

At first, the stock losses hurt companies like Apple and Nike that depend on suppliers from Asia. But by Friday, other sectors, like healthcare, consumer goods, and utilities, also saw losses, even though they usually wouldn’t be affected by tariffs.

Mike Dickson, a researcher in the U.S., said the mood in the market was very negative and it would take weeks to understand the full impact of Trump's tariff plan. He was worried about further actions from China and asked, "How much more of this is coming?"

On a brighter note, some companies related to housing, like mortgage companies, did better. People thought that the trade problems could lead to lower mortgage rates, which might help the housing market. Companies like Nike, which had lost a lot earlier, gained some value on Friday, as people were hopeful about possible deals after Trump said he had a "very productive call" with the leader of Vietnam. Cambodia also showed interest in negotiating lower tariffs with the U.S.

However, some companies, especially those with strong ties to China, continued to struggle. Shares of Apple, which makes most of its products in China, dropped by more than 7% on Friday. Since Wednesday, Apple’s value has dropped by 15%. The Dow Jones dropped 5.5%, down 10% from its high in February. The Nasdaq dropped 5.8%, losing nearly a fifth of its value since December, putting it in a "bear market" territory.

In the UK, the FTSE 100 dropped by 4.9%, its biggest one-day loss since March 2020. In France, the CAC 40 dropped 4.3%, and in Germany, the DAX fell almost 5%. In Japan, the Nikkei 225 index fell by 2.7%, as the country’s Prime Minister called the situation a "national crisis."

Republican Senator Ted Cruz from Texas said that while Trump’s tariffs could help the U.S. in the long run, they also come with big risks. He warned that if the trade war keeps going, with huge tariffs on both U.S. goods and goods from other countries, it could hurt the world’s economy.

Even in places far away from the U.S. and China, businesses are worried. In the Falkland Islands, Janet Robertson, who manages a fishing company, is concerned about how a new 42% tax on exports to the U.S. will affect sales of toothfish, a type of fish that’s very important to the island’s economy. She said they are not making any big decisions yet, but the fishing industry is the most important part of their economy.

As the trade war between the U.S. and China continues, many businesses and countries are worried about what will happen next and how the global economy will be affected.

#trending #latest #StockMarket #TradeWar #USTariffs #China #GlobalEconomy #MarketCrash #S&P500 #StockLosses #Apple #Nike #Trump #FTSE100 #Nasdaq #Tariffs #GlobalTrade #EconomicImpact #MarketDrop #FinancialNews #TradeTensions #USStocks #ChinaTariffs #MarketRecession #headlines #topstories #globalUpdate #dxbnewsnetwork #dxbnews #dxbdnn #dxbnewsnetworkdnn #bestnewschanneldubai #bestnewschannelUAE #bestnewschannelabudhabi #bestnewschannelajman #bestnewschannelofdubai #popularnewschanneldubai