Today's News: Global Markets Plunge as Tariffs Trigger Economic Panic
Global financial markets plummeted following sweeping tariffs on nearly all U.S. imports. Markets in Japan, South Korea, and Australia fell, while U.S. stock futures and oil prices dropped sharply.
Photo: Issei Kato/Reuters
Overview
Date: April 6, 2025
Topic: Global Markets Plunge as Trump’s New Tariffs Trigger Economic Panic
Summary: Global financial markets plummeted following President Donald Trump’s announcement of sweeping tariffs on nearly all U.S. imports, with steep declines continuing into Asian and U.S. futures markets. The tariffs sparked fears of a global recession, triggering retaliatory measures from China and alarm among business leaders, economists, and investors. Markets in Japan, South Korea, and Australia fell between 5% and 10%, while U.S. stock futures and oil prices dropped sharply. Economists and analysts warned of surging inflation, reduced consumer spending, and increased recession risks. Despite bipartisan concern, Trump doubled down on the tariffs, calling them essential to correcting trade imbalances.
Sources
The New York Times – Stocks in Asia Fall Sharply, Extending a Rout Caused by Trump’s Tariffs
CNN – Dow futures tumble as the massive market sell-off continues
NBC News – U.S. stock futures fall and Asian markets open sharply lower as Trump tariffs shock continues
The Washington Post – Asian markets fall sharply as Trump’s tariffs spark recession fears
Wall Street Journal – Stock Market Today: Trump Defends Tariff Use; Dow Futures Tumble 1,500 Points
Note: Fox News leads their front page with the headline President Trump steers focus to trade deficits, China after markets spiral over tariff policy, suggesting coverage of the current financial market turmoil. However, that headline links to an article titled Trump says US not willing to make deal with China unless trade deficit is solved, which does not address the financial markets at all, only restating President Trump’s stance on trade imbalances with China. The article is not included in this analysis. I could not find any other coverage of financial market reaction to tariffs on Fox News or Fox Business.
Key Points
All sources reported a sharp global market sell-off triggered by Trump’s tariffs, with Japan, South Korea, and Australia suffering the steepest early losses (5%–10%).
U.S. markets lost $5–6.6 trillion in value over two days; S&P 500, Nasdaq, and Russell 2000 indices approached or entered bear market territory.
Trump’s tariffs include a universal baseline rate and steeper “reciprocal” tariffs on around 90 countries, with more to come on sectors like auto parts and pharmaceuticals.
China responded with a 34% tariff on U.S. goods, heightening fears of global retaliation.
Analysts and institutions ( JPMorgan, Goldman Sachs) raised U.S. recession odds significantly (up to 60%).
Oil, copper, and Bitcoin all dropped alongside equities; fears of reduced global demand intensified.
Trump and administration officials reiterated support for the tariffs and dismissed market concerns.
Unique Highlights
The New York Times detailed sector-specific ripple effects such as paused auto production and job losses, plus highlighted a historic $5 trillion drop in S&P 500 value and commentary from hedge fund manager Bill Ackman urging a 90-day tariff pause.
CNN quantified the inflationary impact, citing a $660 billion annual tax burden and a 2% CPI increase from tariffs, as well as a 2.1% drop in after-tax incomes (Tax Foundation).
NBC News reported on circuit breakers triggered in Japanese futures trading and quoted Trump calling the tariff strategy an “economic revolution.” It also noted criticism from Elon Musk and Wall Street cuts to Tesla and Apple forecasts.
The Washington Post reported on regional political reactions, including South Korea's $2 billion automotive aid and Australia’s prime minister warning of global disruption.
The Wall Street Journal provided granular market trading updates, including futures data, commodity price changes, and investor sentiment. It also reported Jaguar Land Rover halting U.S. exports and emphasized investor nostalgia for the 2020 crash.
Contrasting Details
Market Loss Figures: Most sources cite $5–5.4 trillion in market losses; NBC News and The Wall Street Journal report a higher figure of $6.6 trillion.
Investor Outlook: The New York Times and CNN noted cautious optimism from some investors about a potential rebound; NBC News and The Wall Street Journal emphasized more severe and sustained panic.
Policy Framing: While CNN, The Washington Post, and NBC News focus on economic fallout and recession forecasts, The Wall Street Journal gives more voice to pro-tariff arguments, including Trump’s framing of an “economic revolution.”
Administrative Tone: CNN and NBC News highlight confusion and inconsistency from Trump officials, while The New York Times presents a firmer unified stance from the administration.
The Newsie Project is an experiment using AI tools to survey contemporary reporting. It attempts to summarize, compare, and contrast the reporting of the major US online news sources.
This is an evolving project. Tools, approaches, and output formats will change over time. The Newsie Project does not attempt to provide a definitive capsule of any news story. While the incidence of errors in these summaries is low, and I attempt to spot-check details, AI tools can hallucinate. Please click through and read the articles for details (some may be paywalled).