Global markets are reeling, and the finger of blame points squarely at one man: Donald Trump. On 7 April 2025, the US President doubled down on his sweeping tariff policies, shrugging off a brutal financial backlash that's sent shockwaves from Wall Street to Tokyo.
As reported by CBS News, Trump called the market turmoil a necessary evil—'medicine' to cure decades of trade imbalances. With Bitcoin soaring and stocks plummeting, the world's economies are caught in a £1 trillion ($1.28 trillion) tug-of-war. Let's unpack this tariff tempest and the defiance driving it.
Markets Melt Down: A £1 Trillion Reckoning
The numbers don't lie, and they're grim. The S&P 500 nosedived nearly 6% on 4 April 2025—its worst day since the 2020 pandemic crash—wiping out £770 billion ($99 billion) in market value in 48 hours, per sources.
Asian markets followed suit, with Japan's Nikkei shedding 5% as traders panicked over Trump's latest tariff salvo: a 34% levy on Chinese goods atop an existing 20%, plus hefty duties on the EU, Japan, and beyond. The Dow Jones tumbled 730 points in a single session, and the Nasdaq wasn't far behind, down £385 billion ($495 billion) in tech-heavy losses.
Trump's response? Unfazed. Speaking to reporters on 6 April 2025, he insisted, 'Sometimes you have to take medicine to fix something.' He framed the chaos as a short-term hit for a long-term win, targeting a £462 billion ($599 billion) US trade deficit with China as the enemy.
But as oil prices dipped and the dollar wobbled, analysts warned of a £1 trillion ($1.28 trillion) global hangover that could linger far longer than the President's optimism suggests.
Tariffs Unleashed: Trump's Trade War Reloaded
This isn't Trump's first tariff rodeo, but it's his boldest. The latest measures, rolled out on 2 April 2025, slap a 10% baseline tariff on all imports, with 'reciprocal' rates soaring as high as 54% for nations like China—calculated, Trump says, to mirror their barriers against US goods.
The White House calls it 'Liberation Day' for American industry. China fired back fast, announcing 34% retaliatory tariffs on US exports like soy and pork, hitting Trump's rural base hard. The EU promised 'robust countermeasures,' while Japan's Prime Minister Shigeru Ishiba dubbed it a 'national crisis' on 4 April 2025.
Defiance Over Doubt: Trump Stands Firm
Even as markets cratered, Trump's resolve didn't. On 7 April 2025, he took to Truth Social, writing, 'China's been hit harder than us—not even close.' His surrogates echoed the bravado: trade adviser Peter Navarro told CNN the Dow would hit 50,000 under Trump's watch, dismissing the sell-off as a 'globalist tantrum.'
The President's logic hinges on a £1 trillion ($1.28 trillion) vision: tariffs as leverage to force fairer trade deals, boosting US factories and jobs. 'We've been ripped off for years,' he told reporters, citing decades of what he calls foreign exploitation.
But the cracks are showing already. Wall Street's two-day rout—the worst in five years—has investors spooked, and warnings of a £2,300 ($2900) iPhone highlight the consumer cost. Still, Trump's betting big, buoyed by Bitcoin's £80,000 ($102,000) peak as a hedge against dollar jitters. Love him or loathe him, he's steering a £1 trillion ($1.28 trillion) ship through stormy seas—and he's not blinking a bit.
