Recession fears that the American China Rates Rates Rates Rates Rate War Destruction on the World Markets – The Times of India

The stock markets worldwide continued their decline on Friday after China took revenge at the last rates of President Donald Trump, which increases the concern that the escalating trade war could push both the US and the global economies into a recession.
The industrial average of Dow Jones fell more than 1,600 points, or 4%, after a steep drop of 1,679 point the previous day. The S&P 500 also slid by 5%, now more than 15% fall compared to the recent peak. The Nasdaq composite, the home base of many technology companies with a considerable company in China, fell by 4% and marked a nearby bear market because, according to AP, 21% under the record of December, lower lowered lower.
The sale on Wall Street was intensified on Friday after the chairman of the Federal Reserve Jerome Powell warned that the rates of the Trump government will probably increase inflation and hind economic growth.
On Friday, the Chinese Ministry of Commerce confirmed that it would impose a rate of 34% on all American imports from 10 April, which immediately corresponds to the American move to increase rates on Chinese goods. This retribution has exacerbated the fear of a long -term trade war between the world’s two largest economies, which shaken trust in world markets.
Tech shares are hit hard for the second day
The technology sector was struck particularly hard, with Apple, Nvidia and Tesla among the greatest losers. Apple’s shares fell more than 4%, which contributed to a loss of 10% for the week. Nvidia saw a pullback of 7%, while Tesla fell by 9%. These companies, which have significant production and sales activities in China, are particularly vulnerable to Beijing’s retaliation measures.
Recession fear
Jpmorgan Now estimates a 60% chance on a recession in 2025, an increase of 40% before the rates were imposed, such as reported CNBC. Bruce Kasman, head of Global Economic Research at JPMorgan, warned: “If this is sustained, this policy would probably push the US and possibly the world economy in a recession this year.”
However, these projections are still evolving, with details about both the American tariff strategy and the reaction of China to be fully created. The Kasman memorandum was published before China’s retribution was officially announced. Despite a better than expected American job report, which showed accelerated recruitment in March, the markets remained sharp because of the long -term risks of the trade conflict.
“The world has changed and the economic conditions have changed,” says Rick Rieder, Chief Investment Officer of Global Fixed Comes at BlackRock.
Uncertainty looms
Many investors now wonder whether this trade war will lead to a global recession. If that happens, stock prices can continue their downward process. The S&P 500 has already lost around 16% in February compared to its highest, and many analysts predict more decreases in the near future. Much of the uncertainty revolves around how long the rates will last and how other countries will respond. Some experts in Wall Street hope that Trump could eventually negotiate the rates after securing the trade concessions of other countries, while others fear that the trade war could live on for months – or even for years – with serious consequences for the global economy.
President Trump has acknowledged that American consumers can experience ‘some pain’ because of the rates, but argued that the benefits in the long-term-such as reducing more production jobs to the US would justify short-term costs. He compared the economic situation with a medical operation, which suggests that, although painful, the American economy, just like a patient, would ultimately benefit from the procedure.
“For investors who look at their portfolios, it could have felt like an operation that was performed without anesthesia,” said Brian Jacobsen, chief economist at Annex Wealth Management.
The former CEO of Goldman Sachs, Lloyd Blankfein, suggested that President Trump allows countries to negotiate the rates in a more flexible way as reported CNBC. Blankfein proposed to retain the basic line rate of 10%, but to postpone the implementation of the “reciprocal” rates for six months, giving countries the opportunity to negotiate and prevent further escalation.
In the meantime, the unrest in the global market became deeper when European shares also had to deal with steep losses. Large European indexes fell by around 5%, which reflects the fear of investors about the impact of the trade war. The prices of crude oil fell to their lowest level since 2021, and the buyer, an important indicator of global economic health, saw significant falls, which indicates growing concern about a global economic delay.
Earlier in the day after the US, the markets showed short signs of recovery after the US reported stronger than expected job growth, where employers add more jobs than expected in March. However, this positive data quickly lost steam when investors put their focus back on the economic risks in the longer term of the trade conflict.