President Trump's recent tariff announcement has triggered severe declines in stock markets, with Dow futures plunging 1,300 points. The S&P 500 and Nasdaq also faced substantial drops, raising fears of a recession. Investors are concerned that the imposed tariffs, estimated to cost Americans $660 billion annually, could backfire and harm the economy instead of helping it. This has led to a decline in the dollar's value and a spike in gold prices, indicating a shift towards safer investments as market confidence wanes.
If Trump maintains the massive tariffs he announced Wednesday, his unprecedented trade policies will probably cause the US and global economies to both fall into a recession in 2025, JPMorgan analysts said in a note to investors.
Tariffs in theory should boost the dollar, but investors' concerns that the United States is creating a self-inflicted wound that would stymie its long-term growth sent the dollar sinking against other global currencies.
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