The United States stock market witnessed a historic downturn, losing $5 trillion in market value within just seven days, following President Donald Trump’s announcement of sweeping new tariffs. The tariffs, which include a 34% levy on all Chinese imports, have intensified the ongoing trade war between the world’s two largest economies, triggering global market turmoil.
China’s Foreign Ministry spokesperson, Guo Jiakun, responded to the market collapse with a sharp rebuke, stating, “The market has spoken.” Guo criticized the US-led tariff war as “unprovoked and unjustified,” urging Washington to resolve trade disputes through “equal-footed consultation.” He emphasized that escalating tensions would harm global economic stability and growth.
The tariffs have led to sharp declines in major US indices, with the S&P 500 dropping 6%, the Dow Jones Industrial Average falling 5.5%, and the Nasdaq Composite plunging 5.8% in a single day. The sell-off marks the worst week for Wall Street since the COVID-19 pandemic, raising fears of inflationary pressures and recession risks.
In retaliation, China announced its own 34% tariffs on all US goods and imposed export restrictions on rare earth materials. Beijing has called for diplomatic resolution, warning that unilateral actions could undermine the rules-based multilateral trading system.
As the trade war escalates, global markets brace for further volatility, with investors hoping for meaningful dialogue to prevent deeper economic fallout. The situation underscores the fragile balance of power in international trade and the far-reaching consequences of policy decisions.
