Wall Street stock market: Wall Street suffered a sharp decline yesterday, with US markets recording their biggest daily percentage drop in years.
According to a foreign news agency, US President Donald Trump’s widely implemented tariffs have raised fears of a global trade war and a recession in the global economy.
Trump imposed a 10% tariff on most US imports, while imposing much higher taxes on other countries. The move has the potential to cause major disruptions to the global trading system, which had reached record levels a few months ago due to business-friendly policies in US stock markets.
Investors made safe investments on Wall Street and turned to government bonds, which are considered safer investments.
The sharp decline on Wall Street increased uncertainty in the markets as other countries involved in global trade are waiting for a response to Trump’s decisions.
China, on the other hand, has threatened retaliation, while the European Union is also opposing the 20% tax.
South Korea, Mexico, India and other trading partners have said they will seek a waiver of the tariff before April 9.
The global reactions have sparked investor anxiety, leading to a sharp decline on Wall Street.