Global markets experienced severe turmoil as Trump's tariff "medicine" took effect. Asian markets opened with steep declines, setting the tone for a day of financial panic. By morning, European markets followed suit with the FTSE 100 plunging 6% to a one-year low.
Trump remained defiant throughout the day, dismissing calls for a tariff pause while threatening China with an additional 50% tariff if Beijing didn't withdraw its 34% retaliatory levies. BlackRock's CEO stated the US was "probably in recession" while Goldman Sachs raised recession chances to 45%.
Prime Minister Starmer characterized the tariffs as a "huge challenge" as his government prepared a response to protect British interests. Meanwhile, France warned the EU could take "extremely aggressive" actions against US tariffs, while the EU offered a "zero-for-zero tariff" arrangement on industrial goods.
By day's end, most US markets closed down after a rollercoaster trading session, with growing fears of an "economic nuclear winter."