The market collapse that began with Trump's tariff announcements evolved into a full-scale global financial disaster. Morning reports showed the Ibex 35 plummeting, initially by 3.5%, then accelerating to 4%, 6%, and finally closing down 5.83% – its worst performance since the pandemic. Banking stocks collapsed by 10%, while Wall Street simultaneously crashed nearly 6%, wiping out €1.5 trillion in market value.
China responded to Trump's tariffs with reciprocal 34% duties on US imports, escalating the trade war. Notably, Russia received exemption from Trump's tariffs, interpreted as strategic negotiation leverage regarding Ukraine.
Spain's political response fractured along partisan lines initially, with PP councilors boycotting government meetings, though by afternoon PP and PSOE approached agreement on a unified response. Experts criticized Sánchez's anti-tariff plan as "disproportionate" and lacking direct aid to affected sectors.