Market Turbulence Deepens Amid Recession Fears Tied to Trump’s Tariffs
No one is at White House is aware of a 90 day tariff pause
4/7/2025
Financial markets are seeing another wave of intense volatility as investor anxiety mounts over the economic fallout from Donald Trump’s escalating trade war.
In Europe, major indices are firmly in negative territory late in the session. London’s FTSE 100 has shed 2.5%, or 205 points, falling to 7,849. Germany’s DAX has dropped 3.5% in early trade, while France’s CAC 40 is down by 4%.
Wall Street saw a dramatic intraday swing — stocks initially plunged but then surged higher after reports surfaced suggesting Trump might delay implementation of some new tariffs by 90 days. That brief rally, however, quickly lost steam after the White House denied the report.
Meanwhile, recession concerns continue to grow. Goldman Sachs raised its probability estimate for a U.S. recession to 45%, amplifying pressure on the administration.
JP Morgan CEO Jamie Dimon also sounded a warning, saying Trump’s tariff strategy could be difficult to unwind and could fuel higher consumer prices, increasing the risk of tipping the U.S. into recession.
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