Trump trade war fears grow as stock market plunges
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Wall Street was left reeling on Monday, March 10, as Donald Trump’s latest tariff tirade sent shockwaves through global markets.
The Dow Jones nosedived by a staggering 890 points, briefly teetering on the brink of a 1,000-point drop, which would have ranked among the top 20 worst days in stock market history. The Nasdaq wasn’t spared either, plunging 4.2% – its worst single-day percentage drop since September 2022 – while the S&P 500 dipped below its 200-day moving average for the first time since November 2023.
Trump’s economic moves lead to worldwide trade war fears
Investors scrambled as Trump’s economic moves – this time taking aim at Canada, Mexico, and China – rattled confidence. Over the weekend, the president hinted on Fox News that the US economy could be heading for a recession, fuelling even more panic among traders. The chaos wasn’t contained to Wall Street. Asian markets tanked on Tuesday, March 11, as the ripple effects of Trump’s economic aggression spread across the globe.
Japan’s Nikkei 225 sank by 2%, and South Korea’s Kospi took an even bigger hit, dropping 3%. Even the China and Australian markets suffered sharp losses. Across the pond, the London Stock Exchange felt the tremors, with sharp declines mirroring the US market’s turmoil. The message was clear: Trump’s trade war wasn’t just a US problem – it’s causing worldwide disruption.
Trump turned his fire on Canada, branding the nation a ‘Tariff abuser’ and warning, “We don’t need your cars, we don’t need your lumber, we don’t need your energy.”
In a swift counterpunch, Ontario slapped a 25% hike on electricity exports to the U.S., directly targeting 1.5 million American consumers. Ontario’s premier made it clear that if Trump wanted a fight, Canada was more than ready to turn the lights off on American energy imports.
Elon Musk’s Tesla stock price goes into freefall
Meanwhile, Trump’s favourite billionaire, Elon Musk, had an absolute nightmare on Monday. Tesla’s stock price went into freefall, wiping a jaw-dropping $18.8 billion off Musk’s personal fortune in a matter of hours.
To make matters worse, X (formerly Twitter) suffered a major cyberattack, adding to the chaos for the controversial tech mogul. But Musk found an unlikely cheerleader in the White House, with Trump leaping to his defence on Truth Social.
“Elon is doing a fantastic job. He shouldn’t be punished for helping make America great again!” Trump declared, even pledging to buy a brand-new Tesla in a show of support.
Stock market slump has Fox News concerned
Even some of Trump’s most devoted backers appeared rattled. Fox News, usually the US president’s safe space, aired concerns over the economic freefall and whether Trump’s brinkmanship was pushing America into a recession.
It’s a stark contrast to last summer, when Trump lambasted the Biden administration’s economic policies. Now, with the markets in freefall under his own watch, the tables have well and truly turned. Is this part of his plan, or has he lost control of the situation?
Watch this space, and have your say in the comments below.
Stay tuned to the Euro Weekly for more US news.
