Global stock markets faced significant pressure after US President Donald Trump approved new tariffs on goods from China, Canada, and Mexico, sparking fears of a potential trade war. The markets experienced a brief recovery early on M
TDT | Manama
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Global stock markets faced significant pressure after US President Donald Trump approved new tariffs on goods from China, Canada, and Mexico, sparking fears of a potential trade war.
The markets experienced a brief recovery early on Monday following reports that President Trump had agreed to delay the implementation of new tariffs on Mexican goods for one month, offering hope for a potential resolution.
Trump’s decision to proceed with the tariffs over the weekend sent shockwaves through the financial world, leading to what some analysts quickly referred to as a “Trump tariff tantrum.” On Monday, Wall Street opened sharply lower, with the S&P 500 dropping nearly 2%. However, a recovery followed after the announcement of a temporary halt in duties between the US and Mexico to allow for negotiations. By the end of the trading day, the S&P 500 closed 0.8% down, while the Nasdaq, which is heavily tech-focused, fell 1.2%.
The Dow Jones industrial average briefly rose out of negative territory before closing down 0.3%.
In Europe, the FTSE 100 in London dropped 1.4% from its previous week’s record high but managed to recover some losses, ending the day down 1%. Meanwhile, Germany’s DAX index fell 1.5%, France’s CAC 40 dropped 1.2%, Spain’s IBEX lost 1.2%, and Italy’s FTSE MIB declined by 0.7%.
In the tech sector, Nvidia, a major US technology company, saw its stock price plummet by over 5%. The company had already faced a sharp decline last week after Chinese AI firm DeepSeek emerged as a competitor, exacerbating investor concerns.
Despite the brief recovery, the global stock market remains on edge as investors continue to weigh the potential economic impact of the tariffs.
