Market Shock: Trump's Reciprocal Tariffs Ignite Global Economic Concerns

Global markets faced significant turmoil after President Trump's announcement of reciprocal tariffs, causing stock markets to plunge and investors to seek safer assets. Experts warn of potential economic repercussions, including a possible trade war, with financial strategists advising diversification and caution in response to the heightened market volatility.

Global markets tumbled on Thursday following U.S. President Donald Trump's declaration of reciprocal tariffs aimed at countering international duties on American goods.

The announcement spurred a massive sell-off in stock markets, with the S&P 500 and the tech-heavy Nasdaq dropping by over 4% and 5% respectively. Investors flocked to safe havens like bonds, gold, and the yen, while U.S. Treasury yields, China's yuan, and crude oil suffered significant declines.

Market strategists emphasized the strong state of the U.S. economy before the announcement but warned of escalating risks should a full-fledged trade war unfold. Experts stressed the importance of diversification and maintaining liquid reserves to navigate the volatility, while remarking on potential policy shifts to stabilize the market.

(With inputs from agencies.)