Worst Week for US shares since Covid Crash if China Revenge

The shock market was deepening on Friday, when China retreated in tariffs announced by US President Donald Trump, increasing the likelihood of a long trade war and damage to the global economy.

All three major stock indices in the US plunged into more than 5%, and the S&P 500 decreased by almost 6%, and since 2020 has reduced the worst week for the US stock market.

In the UK, the FTSE 100 plunged almost 5% – its most steady fall in five years, while the Asian markets also fell and exchanged in Germany and France, faced similar decline.

Trump, who promised to redo the world trade order, rejected the concern of the market shock, noting that the labor market in the US is strong.

“Agree,” he urged his followers on social media. “We can’t lose.”

The World Stock Market has lost trillions of value as Trump has announced a wide 10% import tax on goods from each country, and dozens of countries, including key trading partners such as China, European Union and Vietnam, standing at much greater rates.

Analysts note that the steps, some of which should take effect as soon as Saturday is the highest increase in taxes in the United States since 1968.

They expect measures to reduce trade, and warn that many countries can lead to economic recession.

China replied to Trump on Friday, striking about taxes on the US 34%, holding back exports of key minerals and adding US firms to its blacklisted, calling Trump’s actions as “bullying” and violation of international trade rules.

It seems that other countries hope that they will be able to agree on transactions, despite conflicting signals from the White House about his appetite for negotiations.

MARASH SHEFCHOVIC, the EU Trade Commissioner, which he planned to avenge, said on Friday that he had a “sincere” two -hour exchange with US officials, and wrote in social media, trade relations require a “fresh approach”.

“The EU strives for meaningful negotiations, but also prepared for the protection of our interests,” he said. “We stay in touch.”

Trump’s moves correspond to the promises he made on the campaign trail last year.

But they were more distant than some analysts expected, causing the worst week for the stock market since 2020, when Pandemic Covid-19 led to global shutdown and other violations.

The sale began with firms such as Apple and Nike, which are heavily relying on Asia suppliers. But on Friday, he moved to the sector that usually did not face the direct impact of tariffs such as consumer staples, health care and utilities.

“Open the mood is quite acidic and should be,” said Mike Dixon, Head of Research and Quantitative Strategies in Horizon Investments in the United States, warning that it would take several weeks to understand the impact of Trump’s tariffs.

“What we really worry about now is what we saw in 6am (if China avenged),” he said, how much is it there? “

In an investor’s note, JP Morgan said he put a chance of a world economic recession at a level of 60% this year, which compared to 40% earlier, noting that this year’s shock could reduce growth in the United States by two percentage points.

Some investors have dropped losses, noting that over the past few years they have followed a strange thought of stock prices in the US.

“These shifts on the market we see – they are hard because everything is reduced much faster than they are up,” said Tim Paliara, CEO Captehealth, based in Tennessee.

He said the White House tried a “big reset” in the world trade, but efforts were needed.

“We talked about the trade imbalance all our careers,” he said. “Nothing happened. So, something should happen.

“We are going to align the game conditions on some of these relationships that have just come out of balance.”

Speaking on Friday, US Central Bank Head Jerome Powell, the Central Bank of the United States, said the economy believes remain “firm”, pointing to the latest data showing strong hiring in the US in March.

But he acknowledged a high degree of uncertainty.

“What we have learned is that the tariffs are higher than expected, higher than the forecasters predicted,” Mr. Powell said, warning that growth will be slowed down and prices can rise.

In New Jersey, the owner of small business Pat Muscaritol said the changes could make him close the device store, Jacobson Appliance, after 40 years of business. He has now called on customers making the necessary purchases.

“We do not know what price it will be at the end of the month,” he said, although it covers prices for items such as refrigerators that can be 30% or even 40% higher.

In the markets of the firm related to housing, there was a bright place, perhaps an association on rates, that the shock could lead to a decrease in interest rates on mortgage and help the housing market in the US.

Nike shares and other clothing retailers that were killed on Thursday also leaned on Friday, putting hopes for a deal after Trump said he had a “very productive call” with Vietnam’s leader.

Cambodia also sent a letter suggested to reduce tariffs and ask the United States to negotiate.

But other parts of the market remained gloomy.

Apple shares, which are heavily relying on China for production, decreased by more than 7%on Friday. The market value of the iPhone manufacturer decreased by about 15% from Wednesday.

• Dow Jones fell by 5.5%, reducing it by 10% of its February peak
• Nasdaq fell by 5.8%, destroyed
• In the UK FTSE 100 is closed 4.9% below, the biggest drop in one -day decrease since March 27 2020
• In Europe CAC in France, 40 decreased by 4.3%, and in Germany Dax decreased by almost 5%
• Earlier in Japan, where the Prime Minister called the situation “national crisis”, 225 Nikkei fell more than 2.7%
• International oil benchmark has also dropped by almost 6%

As this section continued, even some White House allies began to criticize measures.

At the tariff supply, republican Senator Ted Cruz from Texas said Trump’s steps could lead to benefits for the United States, preventing “huge risks”.

“If we are in the scenario for 30 days from now on, 60 days, 90 days later, with massive American tariffs and massive tariffs for US goods in any other country on Earth, this is a terrible result,” he said.

In the Folkland Islands Archipelago in the South Atlantic Ocean Janet Robertson, CEO of Consolidated Fishing Limited, was asked how a new 42% tax in the United States will go on sale.

“At the moment, we do not make any dramatic decisions,” she said.

But, she added, fishing is “to date, the most important branch of Folklands.”

“The sales of dental fish to the States are most of it,” she said.

“We wonder where it will end.”

The report, which contributed to Tom Espininer, Nada Tauphik, Cai Pigliucci and the BBC World Service.