The stock market fell hard last Friday after China hit back at President Trump's new taxes. This made people worry about a long trade fight that could hurt money-making around the world. All big US stock charts went down more than five percent. The S&P 500 fell almost six percent, making it the worst week for US stocks since 2020. British stocks had their biggest drop in five years. Markets across Asia, Germany, and France also went down a lot.
Trump wants to change how countries trade with each other. He said he does not care about the market shock because jobs stay strong in America. He told his fans to stay tough and said America couldn't lose. The world stock market has lost trillions of dollars since Trump said he would put new ten percent taxes on everything from every country. Some places, like China, Europe, and Vietnam, face even higher rates. Experts say these moves equal the biggest tax increase in America since 1968.
These experts expect less trade between countries. They warn that many places might face money troubles. China answered Trump by putting a 34 percent tax on US goods. They also limited important minerals and blacklisted American companies. China called Trump's actions bullying that breaks trading rules. Other countries hope they can make deals with America. The European Union trade person had a two-hour talk with US leaders and said they need a fresh way to work together.
Trump did what he promised during his campaign last year. But his actions went further than many experts thought they would. This caused the worst stock market week since the COVID-19 problems in 2020. The selling started with companies like Apple and Nike that use many Asian makers. By Friday, it had spread to areas not directly hit by trade taxes, such as basic goods, health care, and power companies. One money expert said everyone feels pretty bad right now, and it will take weeks to know how much these taxes hurt.
JP Morgan bank thinks there's a sixty percent chance of global money problems this year, up from forty percent before. They say Trump's taxes could lower US growth by two points this year. Some investors say these losses come after stocks went way up over past years. One money manager called it a big reset in global trade that needs to happen. He thinks America must fix trade relationships that have become unfair. Jerome Powell from the Federal Reserve said the economy still looks solid but agreed there's much we don't know.
A small businessman who has sold home appliances for forty years fears he might close his shop. He tells customers to buy things fast because prices could jump thirty or forty percent soon. Some home-related companies did well as people bet that market problems might lead to cheaper house loans. Clothing stores recovered some value after Trump mentioned a good call with Vietnam's leader. Cambodia also asked America to talk about lower taxes. But tech giant Apple fell seven percent Friday because it uses Chinese factories. The company has lost fifteen percent of its value since Wednesday.
The Dow Jones went down five point five percent, bringing it 10 percent below its February high point. The Nasdaq lost five point eight percent, erasing about twenty percent of its value since December. This puts it in the bear market area. Even some White House friends started to criticize these changes. Texas Senator Ted Cruz said Trump's moves might help America but warned of huge risks if every country puts big taxes on American stuff for months. Far away in the Falkland Islands, a fishing company wonders how a new forty-two % tax will affect its fish sales to America. The manager says fishing matters most to their islands, and they don't know where things will end up.
Trump wants to change how countries trade with each other. He said he does not care about the market shock because jobs stay strong in America. He told his fans to stay tough and said America couldn't lose. The world stock market has lost trillions of dollars since Trump said he would put new ten percent taxes on everything from every country. Some places, like China, Europe, and Vietnam, face even higher rates. Experts say these moves equal the biggest tax increase in America since 1968.
These experts expect less trade between countries. They warn that many places might face money troubles. China answered Trump by putting a 34 percent tax on US goods. They also limited important minerals and blacklisted American companies. China called Trump's actions bullying that breaks trading rules. Other countries hope they can make deals with America. The European Union trade person had a two-hour talk with US leaders and said they need a fresh way to work together.
Trump did what he promised during his campaign last year. But his actions went further than many experts thought they would. This caused the worst stock market week since the COVID-19 problems in 2020. The selling started with companies like Apple and Nike that use many Asian makers. By Friday, it had spread to areas not directly hit by trade taxes, such as basic goods, health care, and power companies. One money expert said everyone feels pretty bad right now, and it will take weeks to know how much these taxes hurt.
JP Morgan bank thinks there's a sixty percent chance of global money problems this year, up from forty percent before. They say Trump's taxes could lower US growth by two points this year. Some investors say these losses come after stocks went way up over past years. One money manager called it a big reset in global trade that needs to happen. He thinks America must fix trade relationships that have become unfair. Jerome Powell from the Federal Reserve said the economy still looks solid but agreed there's much we don't know.
A small businessman who has sold home appliances for forty years fears he might close his shop. He tells customers to buy things fast because prices could jump thirty or forty percent soon. Some home-related companies did well as people bet that market problems might lead to cheaper house loans. Clothing stores recovered some value after Trump mentioned a good call with Vietnam's leader. Cambodia also asked America to talk about lower taxes. But tech giant Apple fell seven percent Friday because it uses Chinese factories. The company has lost fifteen percent of its value since Wednesday.
The Dow Jones went down five point five percent, bringing it 10 percent below its February high point. The Nasdaq lost five point eight percent, erasing about twenty percent of its value since December. This puts it in the bear market area. Even some White House friends started to criticize these changes. Texas Senator Ted Cruz said Trump's moves might help America but warned of huge risks if every country puts big taxes on American stuff for months. Far away in the Falkland Islands, a fishing company wonders how a new forty-two % tax will affect its fish sales to America. The manager says fishing matters most to their islands, and they don't know where things will end up.
