Trump tariffs: Global stock market rout continues

US President Donald Trump believes the EU's proposal for an exemption from tariffs on industrial products is unworkable unless Brussels made moves to buy American goods.

"The European Union has been very, very bad to us, they don't take our cars, like Japan in that sense, they don't take our agricultural product. They don't take anything practically," Trump said on Monday.

Trump added that the EU's trade deficit would "disappear quickly" if European countries purchased American energy. 

"They need to buy and commit to purchasing an amount equivalent (to this trade deficit) in energy," Trump said.

Last week, the US president announced a 20% tariff on European goods, which is set to take hold from April 9.

Trump's comments came in response to the proposal — announced earlier on Monday by European Commission President Ursula von der Leyen — seeking a bilateral tariff exemption for industrial goods, including cars.

Israeli Prime Minister Benjamin Netanyahu, during a meeting with President Trump at the White House on Monday, promised to eliminate Israel's trade surplus with the United States.

"We intend to do it very quickly," Netanyahu said, seated beside Trump. "We think it's the right thing to do, and we're going to also eliminate trade barriers."

Netanyahu is the first foreign leader Trump has welcomed to the White House since announcing his new tariff policy last week. Trump reportedly extended a spontaneous invitation last Thursday when Netanyahu called to discuss the tariffs.

The US is Israel's closest ally and largest single trading partner. Last year, the US goods trade deficit with Israel was $7.4 billion (€6.8 billion).

The US and Israel trade under an agreement signed 40 years ago, about 98% of US goods are tariff-free.

Israel moved to cancel remaining tariffs on US imports last Tuesday, April 1. 

Trump announced a 17% US tariff on Israeli goods on April 2. 

Monday's negotiations — how ally and friend Netanyahu proceeds with Trump and how he fares — will no doubt be closely watched by other leaders, whom the White House claims are lighting up the telephone switchboard trying to set up dates to speak with the president.

US markets were down at the end of a rollercoaster day that saw stocks continue the descent they began last week when US President Donald Trump announced his global trade war.

The S&P 500 sank 0.2% Monday; the Dow Jones Industrial Average fell 349 points, or 0.9%; and the Nasdaq composite rose 0.1%.

Stocks recovered slightly shortly before the closing bell to end another turbulent day for investors concerned that Trump might drive the world's economies into a global recession.

At midday, stocks shot up on false reports that the president might be planning to pause the plan after seeing global markets tank.

Trump quickly quashed such talk and instead threatened 50% retaliatory tariffs on China if Beijing doesn't repeal it's own 34% retaliatory tax on the US for its original tariffs, causing prices to resume their fall. 

Trump brought no clarity when fielding questions in the White House on Monday, reinforcing instead the uncertainty that analysts are pointing to over whether the tariffs are a bargaining chip that could be lowered, avoiding a potential global recession; or whether Trump is intent on entirely overhauling the economy, meaning they would become permanent and losses would continue.

US Secretary of State Marco Rubio on Monday spoke with Pakistani Deputy Prime Minister Ishaq Dar on a call in which the two "discussed bilateral relations, regional security, and economic cooperation," according to the Pakistan Ministry of Foreign Affairs.

The Pakistani read-out quoted Rubio as saying that trade and economic cooperation would be the hallmark of future relations between Washington and Islamabad. 

The State Department said, "They discussed US reciprocal tariffs on Pakistan and how to make progress toward a fair and balanced trade relationship."

"The Secretary raised prospects for engagement on critical minerals and expressed interest in expanding commercial opportunities for US companies."  

Pakistan's foreign ministry confirmed that Rubio, "reciprocated the desire to collaborate with Pakistan in trade and investment in various sectors, especially critical minerals."

The US has leaned heavily on rare earths producers (such as Ukraine and Greenland) in an effort to gain control of supplies. 

Trump announced he was slapping a 29% tariff on Pakistan on April 2.

According to Reuters news agency, the European Commission on Monday will put forth a list of US goods — ranging from dental floss to diamonds — to be hit with a 25% counter-tariff in response to steel and aluminum duties imposed by US President Trump. 

The EU's tariffs will reportedly kick in at various points throughout the year, with some going into effect on May 16, and others (on almonds and soybeans) as late as December 1.

Bourbon, wine and dairy products have apparently been removed from the EU's list after Trump threatened a 200% tariff on European alcohol, prompting France and Italy in particular to argue against targeting US booze.

EU member states will vote on the proposal on Wednesday, April 9.

Beyond the counter-tariffs, the EU has clamped down on steel imports, reducing them by 15% on April 1, and is considering putting up import quotas on aluminum as well.  

US President Donald Trump threatened "additional tariffs on Chinaof 50%" in a social media post Monday.

He said he would give Beijing until Tuesday to withdraw its own 34% retaliatory tariffs on US goods, threatening that China would otherwise have to pay an extra 50% starting Wednesday.

"Additionally, all talks with China concerning their requested meetings with us will be terminated!"

If Trump were to carry through on the threat it would result in a 104% tax on Chinese imports.

The White House on Monday also denied rumors about a possible suspension of the massive tariff package. 

Speculation about a pause caused a stir on social media and led to significant market fluctuations Monday, fueling a sharp spike upwards in the morning before returning to a continued downward trajectory.

A government official described the rumors as "fake news" when asked for comment. 

Trump has shrugged at calls to back off on his tariffs as he set markets ablaze, telling US consumers to instead "be strong, courageous and patient!" adding, "Sometimes you have to take medicine to fix something."

The Central Bank of Nigeria (CBN) on Monday announced that it had sold off nearly 200 million US dollars (€183 million) in an effort to shore up its own currency, the naira, in the wake of US President Trump's global tariff crusade. 

The bank said Trump's decision, has "triggered a period of adjustment across global markets."

To ensure "adequate liquidity and support orderly market function, the CBN facilitated market activity on Friday, April 4, 2025, with the provision of $197.71 million through sales to authorized dealers," read a bank statement.

Nigeria is Africa's largest oil producer and its fourth-largest economy. Some 90% of Nigeria's $5-6 billion annual exports to the US are in the form of crude oil, mineral fuels and gas products. 

Trump hit Nigeria with 14% tariffs on April 2. Analysts say that translates to a roughly 12-plus percent drop in crude prices.

European Union member states rallied behind a push to avoid a full trade war through negotiations with US President Donald Trump's administration.

EU Trade ministers met in Luxembourg to chart the way forward

They also discussed retaliation if those planned talks fail. 

Last week, Trump ordered 20% tariffs on the bloc's imports in what EU trade commissioner Maros Sefcovic described as the "most important paradigm shift in global trading patterns since the Second World War."

Read more about the EU response to Trump's tariffs and the delicate balance the bloc is trying to strike by clicking here. 

Despite overall gloom in the German car industry, top brand Volkswagen (VW) offered some good news by leading a domestic manufacturers' rout of US rival Tesla in 2025 first-quarter electric vehicle (EV) sales.  

Statistics compiled by Germany's Federal Motor Transport Authority (KBA) showed that VW sold 25,393 of a total of 112,968 electric vehicles registered between January and March.

Bavarian automaker BMW was next with 10,315 units sold; VW subsidiaries Skoda, Audi and Seat took up spots three, four and five, with Mercedes at number six.

Elon Musk's EV company Tesla sold only 4,935 vehicles in Q1 2025, ranking it eighth after having topped the market just a year ago. 

With Tesla owner Musk's politics and media presence becoming increasingly contentious — his activities at DOGE, his bankrolling of Donald Trump, and his tendency to use his enormous wealth and media power to back far-right anti-establishment parties and candidates in numerous countries — EV sales at the company have fallen precipitously. 

Tesla sales have plummeted since January — when many came to see Musk as the bullying face of mass US government firings — pushing the company to a 13% drop in annual sales and shedding 36% of its total value. 
 

In the investing world, the term "bear market" symbolizes a sustained market downturn, when a stock index falls 20% from its last peak.

The S&P 500, the benchmark US stock index, entered bear market territory on Monday for the first time since 2022.

During a downtrend, more people are looking to sell than buy stocks. The demand to buy is significantly lower than the supply, leading to a drop in share prices.

However, it may be good to buy in a bear market since investing involves buying low and selling high. In a bear market, share prices may fall even further, which is why they are risky to invest in.

The worst-case scenario is a market crash.

The opposite of a bear market is a bull market, which indicates a positive and upward trend in the stock market.

Wall Street's main indexes have opened sharply lower, with all three major US indices were down more than three percent in early trading. 

The drop reflects continued angst after US President Donald Trump's team over the weekend dismissed the worldwide market carnage since his tariff announcement last week.

Investors sought refuge in government bonds amid economic worries over the fallout of US President Donald Trump's sweeping tariff plans.

The S&P 500 index slumped further on Monday and was down more than 20% from its all-time highs. 

The Dow Jones Industrial Average was down 1,200 points, and the tech-heavy Nasdaq composite was 4% lower.

 

President Donald Trump's White House trade adviser Peter Navarro says the European Union (EU) will need to lower its non-tariff barriers (NTBs), including those created by value-added taxes, if it wants to reach a deal to lower US tariffs.

"I would say to the EU when you make those announcements, would you be very careful to tell us you're going to lower your non-tariff barriers?" Navarro told CNBC.

Non-tariff barriers (NTBs) are trade obstacles that aren't import or export taxes but imposed through laws, minimum standards, and policies such as sales tax. 

Canada has asked the World Trade Organization (WTO) to step in and settle its dispute with the US over auto import taxes, the organization has confirmed.

"Canada has requested WTO dispute consultations with the United States concerning US measures imposing a 25% duty on automobiles and automobile parts from Canada," the trade body said.

Amongst other things, according to the WTO, Ottawa claims Washington is violating its obligations under the 1994 General Agreement on Tariffs and Trade (GATT).

The tariffs have already wreaked havoc on the North American auto industry. On top of the cars that roll into the US every day from Canadian factories, many of the parts needed for American auto manufacturing are made in Canada.

Financial markets are pricing in the heightened risk of a global recession as a result of US President Donald Trump's unprecedented tariffs.

One US investment bank believes there is now a 60% chance that the United States and global economies will suffer an economic slump.

Trump's tariffs have already caused a severe stock market rout and are set to spike inflation, knock business confidence and shink both public and private investment. 

Both Trump and China, which has been hit hardest by the new US tariffs, are playing down talk of a deal to resolve the growing trade war.

Read our article about what market analysts are saying about recession fears.