Global Markets Tumble as Trump's Tariffs Shake Economy

Global stocks, the dollar, and oil prices fell sharply as President Trump's new trade tariffs ignited fears of a recession. Investors fled to safe-haven assets like bonds and yen, while retaliatory tariffs from multiple countries further roiled markets. The hefty levies could significantly impact U.S. and global economic growth.

World markets saw a significant downturn Thursday as President Donald Trump announced aggressive new U.S. trade tariffs, sparking widespread fears of a potential global recession. Investors scrambled towards safe-haven assets such as hefty government bonds and the yen, amidst concerns over the escalating trade tensions and its toll on economic growth.

The tariffs announced include a new base rate of 10% on imports, with further severe 'reciprocal' levies applied to dozens of countries accused of having unfair trade practices. European markets responded with sharp declines, as the EU faced a 20% reciprocal tax, inducing volatility across the continent's bourses.

Asian markets were hit hardest, notably Japan, with significant tariff impositions leading to a dramatic 2.7% drop. JP Morgan analysts described the tariffs as exceeding even the most daunting expectations, with several economic forecasters anticipating these measures could cut U.S. growth substantially over this year.

(With inputs from agencies.)