President Trump imposed a sweeping 10% baseline tariff on all imports—hitting China (34%), EU (20%), Japan (24%), and Taiwan (32%)—calling it “Liberation Day.”
The S&P 500 fell 10% in two days; the Dow Jones had one of its worst point drops, dragging global markets down.
Economists raised recession alarms—JPMorgan pegged the risk at 60% for 2025. BlackRock’s CEO said a recession may have already begun.
Experts warned of stagflation: high inflation with low growth. Households could face a $3,800 rise in annual expenses due to tariff-driven price hikes.
Top investors like Bill Ackman warned of “economic nuclear war,” while CEOs compared the scenario to pre-Great Depression conditions.
China and others retaliated with their own tariffs. The move risks dismantling decades of open global trade relationships.
Trump defended the economic pain, saying, “Sometimes you have to take medicine”—betting on long-term recovery despite short-term damage.