Trump's tariff move shakes global markets
Panic has gripped global markets following Donald Trump's announcement that he will impose country-specific customs tariffs. The two-day decline in the S&P has reached historic levels, seen only four times since 1952.
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Market volatility began in the US after President Donald Trump announced that specific rates would be applied to countries through categorization. The rules, which went into effect yesterday, have had a significant impact.
Markets were rattled by expectations that global trade volume would shrink and that the move would trigger inflation and recession in the US, leading to a historic two-day decline in the S&P. Sharp declines were also observed in European stock markets, outside of the US.
HISTORIC DECLINE
While the S&P fell more than 10 percent in two days following Trump's statements, it was noted that this decline has occurred only 4 times since 1952.
The historic declines, in chronological order, were "Black Monday" in October 1987, the Global Financial Crisis (also known as the Mortgage Crisis) in November 2008, the Coronavirus pandemic in March 2020, and the most recent, today's decline caused by Trump's customs tariffs in April 2025.
Panic has gripped global markets following Donald Trump's announcement that he will impose country-specific customs tariffs. The two-day decline in the S&P has reached historic levels, seen only four times since 1952.