US Stocks Plummet Amid Trump's Global Tariff Threats
Summary
US stocks plummeted in Q1 2023, their worst quarter in 3 years, as investors fled to safe havens ahead of President Trump's April 2nd announcement threatening sweeping global tariffs, sparking fears of stagflation, recession and deglobalization despite some experts' skepticism that Trump's tariffs alone can reverse globalization.
Key Points
- US stocks suffered their worst quarter in almost 3 years ahead of President Trump's announcement of sweeping global tariffs on April 2.
- Investors rushed to buy haven assets as Trump suggested the tariffs could apply globally, with analysts warning of risks like stagflation and recession.
- Despite fears of deglobalization, some experts argue Trump's tariffs alone cannot reverse globalization, as Europe and China are larger trade contributors.