Global Stock Markets Witness Decrease Amid Trump's Tariff Policies
(MENAFN) In the aftermath of U.S. Leader Donald Trump's inauguration, international stock exchanges experienced significant downturns, with some indices suffering losses in the double digits.
These declines were closely tied to his trade policy choices, especially the imposition of tariffs.
After Trump's electoral win in November, American stock markets surged to record levels, driven by optimism around potential corporate tax cuts and anticipated reduced regulations.
Investors appeared hopeful about a more business-friendly climate under the new administration.
Although markets were shut in observance of Martin Luther King Day on January 20—the day Trump officially began his second term—they opened the following day with upward momentum.
However, this positive trend quickly reversed as a series of tariff declarations sparked anxiety about rising inflation and the risk of an economic downturn.
The introduction of tariffs targeting major trading allies, including Mexico, Canada, China, the EU and Vietnam, along with industry-specific levies on items like steel, aluminum, and automobiles, led to heightened apprehension both within the United States and abroad.
Following the imposition of retaliatory tariffs by affected countries, global indices suffered their steepest one-day drops since 2020—when the coronavirus pandemic initially rattled financial markets worldwide.
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