U.S. Trade Policy Disrupts Global Markets

On April 2, 2025, President Donald Trump declared "Liberation Day," unveiling a sweeping tariff strategy that imposed a 10% baseline tariff on all imports, with additional country-specific tariffs targeting approximately 60 nations. This move, framed as a "declaration of economic independence," marked a significant escalation in trade tensions. ​

The immediate aftermath saw global financial markets react negatively. The Dow Jones Industrial Average plummeted by 1,600 points, while the S&P 500 and Nasdaq experienced their steepest declines since 2020. Major U.S. tech companies, including Nvidia, reported substantial losses, with Nvidia anticipating a $5.5 billion revenue hit due to the ban on its AI chips in China. ​

Internationally, the World Trade Organization warned that these tariffs could reverse global trade growth, and the United Nations projected a slowdown in global economic growth to just 2.3% in 2025.