Here’s the latest.

 

Yan Zhuang

Updated

April 7, 2025, 3:39 a.m. ET6 minutes ago

Yan Zhuang

https://www.nytimes.com/live/2025/04/07/business/trump-tariffs-stock-market

 

Here’s the latest.

Stocks around the world plunged on Monday, and the S&P 500 was poised to drop again, as President Trump doubled down on global tariffs that have made investors increasingly pessimistic about the economy.

 

The main stock index in Hong Kong, where many mainland Chinese companies trade, plunged over 12 percent. In Taiwan, a hub for global technology, stocks were clobbered nearly 10 percent. Japan’s Nikkei 225 index finished almost 8 percent lower, while benchmarks in South Korea tumbled more than 5 percent.

 

Stocks in Europe opened sharply lower. The FTSE 100 in London and the Stoxx Europe 600 were both down about 5 percent.

 

The moves reflected deepening concern that Mr. Trump’s significant new taxes on U.S. imports could disrupt global supply chains, cause inflation to accelerate and spark a severe economic downturn.

 

Wall Street, where financial titans spent the weekend surveying the damage of last week’s sell off, was bracing for more chaos on Monday. The S&P 500, which is already 17.4 percent below its February peak, was nearing a bear market, defined as a drop of 20 percent or more from a recent peak.

 

The benchmark U.S. index was set to open more than 4 percent lower on Monday, according to futures trading.

 

Mr. Trump on Sunday evening said that he would not ease tariffs on other countries “unless they pay us a lot of money.” He dismissed concerns that his steep new taxes on imports would lead to higher prices, calling them “a very beautiful thing.”

 

Here’s what else to know:

 

Oil prices: U.S. oil prices briefly dipped below $60 a barrel on Sunday, their lowest level in almost four years, in another sign of concern about a slowing economy. Cheaper oil is generally good for consumers and businesses that use gasoline, diesel and jet fuel. But if prices remain around these levels or fall further, American oil and gas companies are likely to slow drilling, cut spending and lay off workers.

 

Cryptocurrency: Since Mr. Trump announced his global tariffs last week, the price of Bitcoin has plunged 10 percent, dropping below $78,000 on Sunday night. The decline shows that Bitcoin, often pitched as a stable long-term source of value, is still subject to the gyrations of the broader market.

 

Girding for a trade war: China’s leaders, after retaliating against Trump’s tariffs on Friday, said on Sunday that they were prepared for a trade war with the United States, and that China could potentially come out stronger as a result. The commentary highlights how Beijing hopes to project strength while presenting itself as a responsible global power championing fair trade.