Global Markets Rattled by Trump's Tariff Shockwave

U.S. President Donald Trump's sweeping tariff plans triggered global market turmoil, as investors fear the economic repercussions. European and Asian stocks suffered heavily, prompting discussions among global leaders to address the crisis. Some analysts anticipate a U.S. recession, while others call for negotiations to mitigate the situation.

Global financial markets reeled on Monday following U.S. President Donald Trump's announcement of extensive tariff plans. Trump's declaration that foreign governments will need to pay 'a lot of money' to remove the levies was labeled as 'medicine,' causing investor panic worldwide.

Major declines struck Asian and European equities, with Europe's shares hitting a 16-month low and oil prices dropping significantly. China's sovereign fund intervened to stabilize its markets after steep losses in mainland China and Hong Kong. Meanwhile, the European Union held urgent talks to devise a response strategy but remains divided on their approach.

Following these developments, financial institutions adjusted their forecasts, with Goldman Sachs raising the probability of a U.S recession to 45% within the next year. Although Trump's commentary suggested little concern for the market downturn, many political and economic leaders are emphasizing the need for strategic negotiations to avoid further financial instability.

(With inputs from agencies.)