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Global markets plunged Monday following last week’s two-day meltdown on Wall Street, and U.S. President Donald Trump said he won’t back down on his sweeping new tariffs, which have roiled global trade.

Countries are scrambling to figure out how to respond to the tariffs, with China and others retaliating quickly.

Trump’s tariff blitz fulfilled a key campaign promise as he acted without Congress to redraw the rules of the international trading system. It was a move decades in the making for Trump, who has long denounced foreign trade deals as unfair to the U.S.

The higher rates are set to be collected beginning Wednesday, ushering in a new era of economic uncertainty with no clear end in sight.

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Here’s everything that happened on April 7, 2025:

Trump says he won’t pause tariff plan

Despite hopes that he’ll back off his trade policies, the president said he’s not going to pause plans for tariffs.

“We’re not looking at that,” he said in the Oval Office. However, he also said foreign leaders were looking to cut new trade deals with the U.S.

“We have many, many countries that are coming to negotiate with us,” he said.

Trump said there was no contradiction between implementing tariffs and holding talks.

“They can both be true,” he said.

The Associated Press

Trump has lost more than a billion dollars in stock value

Trump’s stake in his social media company that runs Truth Social has fallen to $2.4 billion, a 40 per cent plunge from when the stock market began tumbling on tariff fears on Feb. 19.

The drop in percentage terms is twice that of the S&P 500.The president’s heavy exposure to stocks through his Trump Media & Technology stake contrasts sharply from when he was last president and boasted regularly about stock market records.

Back then, before he took his social media public, he had just 0.1 per cent of his wealth in stocks.

Just how much a backlash from Trump’s tariffs will hurt his overseas golf club and hotel and residential tower businesses is unclear because they are privately held. Before Trump’s “Liberation Day” tariff announcement, Forbes valued his holdings, including his Trump Media stake, at about US$5 billion.

The Associated Press

Markets finish the trading day with mixed results

Equity markets saw mixed results after wild swings during the day.

The S&P/TSX Composite Index finished 1.44 per cent lower to 22,859.46.

Meanwhile the S&P 500 declined by 0.23 per cent to 5,062.23 and the Nasdaq Composite Index rose 0.1 per cent to 15,603.26.

Daniel Johnson, BnnBloomberg.ca journalist

Experts worry of a possible bear market

Wall Street could soon be in the claws of another bear market as the Trump administration’s tariff blitz fuels fears that the added taxes on imported goods from around the world will sink the global economy.

A bear market is a term used by Wall Street when an index such as the S&P 500 or the Dow Jones Industrial Average has fallen 20% or more from a recent high for a sustained period of time.

The last bear market happened from Jan. 3 to Oct. 12 in 2022. But this decline feels more like the sudden, turbulent bear market of 2020, when the benchmark S&P 500 index tumbled 34 per cent in a one-month period, the shortest bear market ever.

The S&P 500, Wall Street’s main barometer of health, was down 1.2% in Monday afternoon trading. It’s now 18.4 per cent below the all-time high it set on Feb. 19.

The Dow industrials fell 1.8%, and the tech-heavy Nasdaq composite, which already was in a bear market, dropped 0.9 per cent.

The Associated Press

Stocks sway after Trump threatens to escalate trade war

The S&P 500 was up 0.3 per cent in afternoon trading, coming off its worst week since COVID began crashing the global economy in March 2020.

The index, which sits at the heart of many investors’ 401(k) accounts, has been flirting with a drop of 20% from its record set less than two months ago.

The Dow Jones Industrial Average was down 184 points, or 0.5%, as of 2:37 p.m. EDT, and the Nasdaq composite was 0.8% higher.

The Associated Press

Experts don’t think China will back down in the face of Trump’s latest tariff threat

Experts say Beijing is unlikely to back down, after President Trump threatened to raise tariffs on China if Beijing does not withdraw its retaliatory tariffs.

“At this point, it is extremely unlikely for China to back down,” said Yun Sun, director of the China program at the Washington-based think tank Stimson Center, adding any leadership summit between Trump and Chinese President Xi Jinping “doesn’t appear likely in the near future.”

“China is increasingly convinced that the tariff is not negotiable because Trump’s eventual goal is to bring manufacturing jobs back to the U.S.,” Sun said.

Craig Singleton, senior China fellow at another Washington-based think tank Foundation for Defense of Democracies, called Trump’s threat from today “a blunt ultimatum to Beijing that sharply raises the takes in the U.S.-China tariff war.”

He said Beijing’s rigid system and fear of looking weak prevent Xi from opening back channels with the Trump administration that could offer relief.“

This is not a contest of endurance so much as a collision course, where neither side intends to swerve,” Singleton said. “In other words, Trump and Xi are locked into escalation-as-strategy, and the risk now is a slow-motion spiral with no clear ceiling.”

The Associated Press

Think twice before bailing out of the stock market, financial advisers say

The huge swings rocking Wall Street and the global economy may feel far from normal. But, for investing at least, drops of this size have happened throughout history.

Any kind of uncertainty around the economy will give Wall Street pause, but the trade war is making it more difficult for companies, households and others to feel confident enough to invest, spend and make long-term plans.

Anytime an investor sees they’re losing money, it feels bad. This recent run feels particularly unnerving because of how incredibly calm the market had previously been. The S&P 500 is coming off a second straight year where it shot up by more than 20%.Selling may offer some feeling of relief. But it also locks in losses and prevents the chance of making the money back over time.

Historically, the S&P 500 has come back from every one of its downturns to eventually make investors whole again.

That includes after the Great Depression, the dot-com bust and the 2020 COVID crash.

The Associated Press

Indexes rally despite uncertainty

The S&P 500 and Nasdaq have risen above yesterday’s close in a gradual climb since their early-morning lows.

The Nasdaq hit a 123-point gain before 2 p.m. EDT, while the S&P gained 12 points.

Luca Caruso-Moro, breaking news digital assignment editor

Copper prices fall further

The price of copper fell nearly four per cent Monday following sharp drops late last week. Copper prices were up as much as 30 per cent for the year as of late March and nearly all of those gains have been erased.

Copper prices had hit record levels because of growing demand amid developments for artificial intelligence technology and a global shift to cleaner energy.

A prolonged trade war threatens economies around the world. That makes investments in technology and energy infrastructure more difficult.

Much of the world’s technology wouldn’t work without copper. It goes into cords for electrical devices, transmission lines, batteries, LED lights and other electronics.

The Associated Press

Bogus report on tariff pause briefly lifted markets before White House denied it

A bogus rumor that President Donald Trump was considering a pause in tariffs briefly lifted markets Monday before the White House shot down the unfounded reports.

The confusion — which was amplified on social media and by some traditional media outlets — lasted less than a half hour but reflected a jittery mood on Wall Street as stocks plunged over worries that Trump’s tariffs could torpedo the global economy.

The origin of the false report was unclear but it appeared to be a misinterpretation of comments made by Kevin Hassett, director of the White House National Economic Council, during a Fox News interview earlier Monday morning.

Asked whether Trump would consider a 90-day tariff pause suggested by a prominent hedge fund manager, Hassett said “I think the president is going to decide what the president is going to decide.”

Nearly two hours later, multiple user accounts on social media platform X posted identical messages claiming Hassett said Trump is considering a pause for all countries except China. Stock traders and some news outlets picked up the story, and the market skyrocketed on the hint of good news.

The Dow Jones Industrial Average briefly erased a morning loss of 1,700 points, shot up more than 800 points and then went back to a loss of 629 points. The S&P 500 likewise made sudden up-and-down lurching movements.

The White House initially appeared as confused as everyone else. But after 20 minutes, a government account rejected the report as “fake news.”

The Associated Press

‘Highly uncertain’: Wealth manager says it’s hard to value the current market

One wealth manager says analyst responses to upcoming first quarter earnings reports may provide some clarity for investors amid volatile equity markets, saying he sees opportunities in Canadian energy and gold.

Lyle Stein, president at Forvest Global Wealth Management Inc., said in an interview with BNN Bloomberg Monday that there is “no question about the uncertainty out there in the market,” leaving investors unable to place bets on the future given tariff uncertainty.

• Real-time TSX market updates here

“Now that’s creeping into all kinds of other things. … How do you actually even look at a company in this highly uncertain world?” he said.

Stein added that his company is looking at upgrading its portfolio by reinvesting cash, saying there are “lots of places to look for income when everything goes on sale.”

Given the current circumstances, he said he likes Canada’s energy sector.

“We like the pipeline area. We like the fact that we’re getting well north of five per cent yields and we like the fact that it is a North American situation more so than a made-in-Canada situation,” he said.

Daniel Johnson, BnnBloomberg.ca journalist. Read the full story here.

U.S. hits Canada lumber with 34% duties even before Trump tariffs

The U.S. is poised to more than double duties on Canadian softwood lumber to 34.45 per cent, Bloomberg reports, citing a U.S. Department of Commerce memo.

The U.S. currently levies countervailing and anti-dumping duties totaling 14.4 per cent, a level that was set last year. Those are now set to rise another 20 percentage points, according to the memo.

Bloomberg. Read the full story here.

Carney on market turmoil: ‘Unfortunate’ but ‘not unforeseen’

Liberal Leader Mark Carney made brief remarks about today’s market turmoil, saying that it’s a “direct consequence” of U.S. President Donald Trump’s “unjustified” tariffs.

“As much as this is unfortunate, it’s not unforeseen. This is what we have been concerned about, and indeed this is what we’ve been trying to warn the president of the United States about,” Carney said during a campaign stop in Victoria, B.C.

“I’m not going to sugarcoat it. There are maybe some tough days ahead for Canadians. But I also want to reassure that we’re prepared.”

He added that a Liberal government would take steps to protect Canada from tariff repercussions, pointing out his experience as the Bank of Canada governor during the 2008 financial crisis and Bank of England governor during Brexit.

Bryann Aguilar, CTVNews.ca federal election writer

12:00 p.m. EDT: TSX drops more than 500 points

Canada’s main stock index was down more than 500 points in late-morning trading, while U.S. stocks also continued to post big losses after U.S. President Donald Trump’s tariff announcement last week. The S&P/TSX composite index was down 550.75 points at 22,642.72.

The Canadian Press. Full story here.

Slide in oil prices deepens

Oil prices are falling Monday, extending their slide from last week, as investors anticipate that a trade war will chill global economic growth.

The price of benchmark U.S. crude oil was down 1.1 per cent to US$61.32 a barrel before noon. Earlier in the day, it briefly dipped below US$60 a barrel for the first time since 2021.

U.S. crude is down 14.2 per cent so far this month.

Brent crude, the international standard, is down one per cent to US$64.88 a barrel.

The Associated Press

Bitcoin and other cryptos see large price drops

After holding relatively stable during last week’s global market turmoil, cryptocurrencies have joined the sell-off.

Bitcoin, the world’s most popular cryptocurrency dipped below US$75,000 Monday morning before seeing a slight rebound.

Bitcoin’s prices haven’t been this low since just after Trump’s Election Day victory last year launched a bull run in crypto prices.

Bitcoin’s backers say it is a type of digital gold that can act as a hedge against volatility. But Garrick Hileman, an independent cryptocurrency analyst, said bitcoin’s price slide shows that thesis still hasn’t proven to be true.

“It’s just not there today,” he said. “(Bitcoin) trades like a risky tech stock.”Other major digital assets, like ether, XRP and solana, saw even bigger one-day percentage drops on Monday morning.

The Associated Press

Trump threatens more tariffs on China

Trump said on Monday he will impose an additional 50% tariff on China if Beijing does not withdraw its 34 per cent retaliatory tariffs on the United States.

“Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately,” Trump said in a post on Truth Social.

Reuters. Read the full story here.

Markets swing down, then up, then down after open

Stocks are sharply swinging down, up, then down again on Wall Street as markets try to assess the potential damage from Trump’s global trade war.

The Dow Jones Industrial Average briefly erased a morning loss of 1,700 points, shot up more than 800 points, then went back to a loss of 414 points.

The S&P 500 likewise made sudden up-and-down lurching movements and was down 1.3 per cent in the first hour of trading.

The Nasdaq composite was down 0.8 per cent That followed sharp drops around the world as worries rise about whether Trump’s trade war will torpedo the global economy.

The Associated Press

Tesla shares plunge below Lutnick’s ‘never this cheap’ level after markets open

Tesla Inc.’s stock extended losses Monday, dropping below a price at which U.S. Commerce Secretary Howard Lutnick predicted they’d never fall to again.

The shares plunged as much as 9.2 per cent to US$217.41 as of 9:41 a.m. in New York, amid a broader selloff in global equity markets.

Esha Dey, Bloomberg News. Read the full story here.

Stock market losses are ‘self-inflicted wounds’: expert

U.S. President Donald Trump’s tariffs come as a shock to the system at a time when North American economies were otherwise healthy, Adam Johnson, author of the Bullseye Brief, told BNN Bloomberg.

“We have inflation that has come down to, on average, around two and a half per cent,” he said.

“That’s pretty good … we have the most number of people ever making the most amount of money ever, and they have been spending.”

“These are self-inflicted wounds,” he said.

Luca Caruso-Moro, breaking news digital assignment editor

S&P 500, Nasdaq slide at 9:30 a.m. EDT

The S&P 500 slid into a four per cent loss minutes after the open. The Nasdaq saw a 4.58 per cent loss.

Luca Caruso-Moro, breaking news digital assignment editor

Dow opens at 3.18 per cent loss

The Dow Jones Industrial Index opened at a 3.18 per cent loss Monday as global markets shuddered in the shadow of U.S. President Donald Trump’s tariffs.

Trump announced what he called “reciprocal” tariffs against global trading partners last week, prompting wide-ranging selloffs.

So far, Trump hasn’t budged on his tariff plan.

Before markets opened on Monday, the president wrote “Don’t be weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!)” on Truth Social.

Luca Caruso-Moro, breaking news digital assignment editor

BoC reports show trade uncertainty takes toll

A pair of reports from the Bank of Canada pointed to declining business and consumer sentiment in the first quarter as the uncertainty over U.S. tariffs took their toll.

The central bank’s business outlook survey said 32 per cent of firms are now planning with the assumption that a recession will occur in Canada over the coming year, up from 15 per cent over the past two quarters.

The reading came as a smaller proportion of businesses expected sales growth to improve over the coming year, while plans for investment in machine equipment declined.

Meanwhile, the Canadian survey of consumer expectations said concerns about job security increased because of the trade conflict. The report also said that for the first time since the first half of 2024, there was an increase in the share of consumers who said they are reducing or planning to reduce their overall spending.

The reports come ahead of the Bank of Canada’s next interest rate decision and monetary policy report set for April 16.

The surveys were done before U.S. President Donald Trump’s so-called reciprocal tariff announcement last week that prompted increased fears of a global recession and a plunge on stock markets around the world.

The Canadian Press

Finger pointing as markets plunge

The dispute over tariffs has caused some fracturing within Trump’s political coalition.

Hedge fund manager Bill Ackman said the president was “launching a global economic war against the whole world at once” and urged him to “call a time out.”

“We are heading for a self-induced, economic nuclear winter,” he wrote on X on Sunday.

Top White House economic adviser Kevin Hassett told Fox News on Monday morning that Ackman should “ease off the rhetoric a little bit.”

Hassett said critics were exaggerating the impact of trade disputes and talk of an “economic nuclear winter” was “completely irresponsible rhetoric.”

The Associated Press

Trump digs in his heels

The president showed no interest in changing course despite turmoil in global markets.

He said other countries had been “taking advantage of the Good OL’ USA” on international trade.

“Our past ‘leaders’ are to blame for allowing this, and so much else, to happen to our Country,” he wrote on Truth Social. “MAKE AMERICA GREAT AGAIN!”

Trump criticized China for increasing its own tariffs and “not acknowledging my warning for abusing countries not to retaliate.”

The Associated Press

Wall Street set to open with more losses

Markets on Wall Street are poised to open the week with more significant losses as fears mount that U.S. tariffs announced by President Donald Trump would lead to a global economic slowdown.

European and Asian shares saw dramatic losses, while futures for the S&P 500 index fell 2.7% in premarket trading. The index was down 17.4% from its recent high in February as of the end of last week. A drop of 20% or more from a recent high is what market observers consider a bear market.

Oil prices sank again, briefly dipping below $60 a barrel for the first time since 2021.

Futures for the Dow Jones Industrial Average slipped 2.4%. Nasdaq futures fell 3%.

Hong Kong stock market slumps but official warns against drastic action

Hong Kong Financial Secretary Paul Chan says the current volatility in the market does not warrant any drastic measures to be taken, vowing the city will remain a free port.

After the city’s stock market slumped 13.2% on Monday, Chan told reporters that it was functioning in an orderly manner, with substantial selling and buying interests. But the U.S. tariffs will inevitably cause market fluctuations and retaliatory measures and interest rate policy from other countries will trigger more volatile capital flows.

He blasted the latest U.S. tariffs as “bullying and unreasonable,” saying they have disrupted global supply chains and severely impacted the global economic recovery process.

Hong Kong, a former British colony which returned to China in 1997, enjoys semiautonomy that allows its policies and economic system to be different from mainland China’s.

The Associated Press

German exports to the US grew in February as firms anticipated tariffs

Germany has reported a large increase in exports to the United States in February, ahead of U.S. President Donald Trump’s announcement of sweeping tariffs.

Germany has Europe’s biggest economy and is a leading exporter. Last year, the United States was its biggest single trading partner for the first time in nearly a decade, displacing China.

The Federal Statistical Office said Monday that Germany’s exports to the U.S. were up 8.5% in February compared with the previous month, at 14.2 billion euros ($15.6 billion). German exports to the entire world, including other EU nations, were up 1.8% in the same period at 131.6 billion euros.

The head of Germany’s exporters association, the BGA, said the February increase “must not deceive us” as the rise in exports to the U.S. was due to “anticipatory effects.”

Dirk Jandura said in a statement that “U.S. firms bunkered and German firms moved deliveries forward.”

He added that “Germany and the EU must quickly find their role in the new world order” and “approach the global South with pragmatic offers.”

Jandura argued that “the sweeping U.S. blow offers a unique opportunity to position Europe as a reliable and trustworthy partner.”

Netanyahu will be the first foreign leader to meet with Trump since the tariff announcement

Israeli Prime Minister Benjamin Netanyahu will meet U.S. President Donald Trump in Washington Monday, becoming the first foreign leader to visit since Trump unleashed tariffs on countries around the world.

Whether Netanyahu’s visit succeeds in bringing down or eliminating Israel’s 17% tariff remains to be seen, but how it plays out could set the stage for how other world leaders try to address the new tariffs.

Netanyahu’s office has put the focus of his hastily organized Washington visit on the tariffs, while stressing that the two leaders will discuss major geopolitical issues including the war in Gaza, tensions with Iran, Israel-Turkey ties and the International Criminal Court.

Eytan Gilboa, an expert on U.S.-Israel relations, said he expected Trump to use the tariffs as leverage to force out concessions from Netanyahu. Trump may pressure Netanyahu to move toward ending the war in Gaza, at the very least through some interim truce with Hamas that would pause the fighting and free more hostages.

In a preemptive move last week, Israel announced that it was removing all tariffs on goods from the U.S., mostly on imported food and agricultural products.

The Associated Press

German economy minister calls US tariffs ‘nonsense’

Germany’s economy minister says the premise of U.S. President Donald Trump’s wide-ranging tariffs is “nonsense,” and he is arguing that Europe is in a strong position.

Robert Habeck, who is also vice chancellor in Germany’s outgoing government, said as he arrived at a meeting of European Union trade ministers in Luxembourg Monday that he and his colleagues must act “calmly, prudently but also clearly and with determination.”

He said that means “being clear that we are in a strong position — America is in a position of weakness.” He argued that “we don’t have time pressure now,” but the U.S. does.

Habeck said it’s important for the EU to stick together, arguing that attempts by individual countries to win exemptions haven’t worked in the past. He stressed the importance of trade agreements and contacts with other regions of the world, such as South America, Asia and the Pacific.

The German minister said of Trump’s tariffs that “even the basis of the calculation is nonsense: The assumption that a trade budget surplus or deficit is a problem in itself is a wrong estimation.”

The Associated Press

Indonesia says it won’t retaliate against Trump’s tariffs

Indonesia says it won’t retaliate against Trump’s 32% tariff but will pursue diplomacy and negotiations to seek mutually beneficial solutions.

Indonesia, which had an $18 billion trade surplus with the U.S. last year, will gather input from business leaders to create a strategy for addressing the tariffs and find ways to reduce the deficit, Coordinating Economic Affairs Minister Airlangga Hartarto said Monday.

“We will increase the volume of purchases so that the $18 billion trade deficit can be reduced,” Hartarto said.

China accuses US of unilateralism, protectionism and economic bullying

China on Monday accused the United States of unilateralism, protectionism and economic bullying with tariffs.

“Putting ‘America First’ over international rules is a typical act of unilateralism, protectionism and economic bullying,” Foreign Affairs spokesperson Lin Jian told reporters.

Last week, Trump put an additional 34% tariff on Chinese goods, on top of two rounds of 10% tariffs already declared in February and March, which Trump said was due to Beijing’s role in the fentanyl crisis. China and other governments retaliated quickly. China announced its own 34% tariff rate on U.S. goods.

Lin said the new tariffs harmed the stability of global production and supply chains and seriously impacted the world’s economic recovery.

“Pressure and threats are not the way to deal with China. China will firmly safeguard its legitimate rights and interests,” Lin added.

The Associated Press

European shares plunge in early trading

European shares dropped in early trading, with Germany’s DAX falling 6.5% to 19,311.29. In Paris, the CAC 40 shed 5.7% to 6,861.27, while Britain’s FTSE 100 lost 4.5% to 7,694.00.

South Korea’s top trade negotiator will visit Washington

South Korea’s top trade negotiator will visit Washington this week to express Seoul’s concerns over the Trump administration’s increased tariffs and discuss ways to mitigate their negative impact on South Korean businesses.

South Korea’s Ministry of Trade, Industry and Energy said Monday that its minister of trade, Inkyo Cheong, plans to meet with various U.S. officials, including U.S. Trade Representative Jamieson Greer.

The ministry says Cheong aims to gather detailed information on the Trump administration’s trade policies and engage in discussions to reduce the 25% tariffs placed on South Korean products.

Chinese officials meet business representatives from Tesla and other US companies

Chinese government officials met business representatives from Tesla, GE Healthcare and other U.S. companies on Sunday. It called on them to issue “reasonable” statements and take “concrete actions” on addressing the issue of tariffs.

“The United States in recent days has used all sorts of excuses to announce indiscriminate tariffs on all trading partners, including China, severely harming the rules-based multilateral trade system,” said Ling Ji, a vice minister of commerce, at the meeting with 20 U.S. companies.

“China’s countermeasures are not only a way to protect the rights and interests of companies, including American ones, but are also to urge the U.S. to return to the right path of the multilateral trading system,” Ling added.

Ling also promised that China would remain open to foreign investment, according to a readout of the meeting from the Ministry of Commerce.

The Associated Press

Malaysia wants Southeast Asia to present a united response to tariffs

Malaysia’s Trade Minister Zafrul Abdul Aziz said his country wants to forge a united response from Southeast Asia to the sweeping U.S. tariffs.

Malaysia, which is the chair of the Association of Southeast Asian Nations this year, will lead the regional bloc’s special Economic Ministers’ Meeting on April 10 in Kuala Lumpur to discuss the broader implication of the tariff measures on regional trade and investment, Zafrul told a news conference on Monday.

“We are looking at the investment flow, macroeconomic stability and ASEAN’s coordinated response to this tariff issue,” Zafrul said.

ASEAN leaders will also meet to discuss member states’ strategies and to mitigate potential disruptions to regional supply chain networks.

The Associated Press

Pakistan will send a government delegation to Washington

Pakistan plans to send a government delegation to Washington this month to discuss how to avoid the 29% tariffs imposed by the U.S. on imports from Pakistan, officials said Monday.

The development came two days after Pakistan’s prime minister asked its finance minister to send him recommendations for resolving the issue. The U.S. imports around $5 billion worth of textiles and other products from Pakistan, which heavily relies on loans from the International Monetary Fund and others.

The Pakistan Stock Exchange fell rapidly on Monday. The exchange suspended trading for an hour after a 5% drop in its main KSE-30 index.

The Associated Press

Mideast markets follow oil prices lower

Middle East stock markets tumbled as they struggled with the dual hit of the new U.S. tariffs and a sharp decline in oil prices, squeezing energy-producing nations that rely on those sales to power their economies and government spending.

Benchmark Brent crude is down by nearly 15% over the last five days of trading, with a barrel of oil costing just over $63. That’s down nearly 30% from a year ago, when a barrel cost over $90.

That cost per barrel is far lower than the estimated break-even price for producers. That’s coupled with the new tariffs, which saw the Gulf Cooperation Council states of Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates hit with 10% tariffs. Other Mideast nations face higher tariffs, like Iraq at 39% and Syria at 41%.

The Dubai Financial Market exchange fell 5% as it opened for the week. The Abu Dhabi Securities Exchange fell 4%.

Markets that opened Sunday saw losses as well. Saudi Arabia’s Tadawul stock exchange fell over 6% in trading. The giant of the exchange, Saudi Arabia’s state-owned oil company Aramco, fell over 5% on its own, wiping away billions in market capitalization for the world’s sixth-most-valuable company.

The Associated Press

China projects confidence, saying ‘the sky won’t fall’

Beijing struck a note of confidence on Monday even as markets in Hong Kong and Shanghai tumbled.

“The sky won’t fall. Faced with the indiscriminate punches of U.S. taxes, we know what we are doing and we have tools at our disposal,” wrote The People’s Daily, the Communist Party’s official mouthpiece.

China announced a slew of countermeasures on Friday evening aimed at Trump’s tariffs, including its own 34% tariffs on all goods from the U.S. set to go in effect on Wednesday.

The Associated Press

Australian dollar drops to levels last seen early in pandemic

The Australian dollar fell below 60 U.S. cents on Monday for the first time since the early months of the COVID-19 pandemic.

The drop reflected concerns over the Chinese economy and market expectations for four interest rate cuts in Australia this calendar year, Australian Treasurer Jim Chalmers said.

“What our modeling shows is that we expect there to be big hits to American growth and Chinese growth and a spike in American inflation as well,” Chalmers said.

“We expect more manageable impacts on the Australian economy, but we still do expect Australian GDP to take a hit and we expect there to be an impact on prices here as well,” he added.

The Trump administration assigned Australia the minimum baseline 10% tariff on imports in the the United States. The U.S. has enjoyed a trade surplus with Australia for decades.

The Associated Press

Indian stocks tumble as selling pressure intensifies

Indian stocks fell sharply on Monday, seeing their biggest single-day drop in percentage terms since March 2020 amid the pandemic.

The benchmark BSE Sensex and the Nifty 50 index both dropped about 5% after trading opened but then recovered slightly. Both were later trading down about 4%.

The Associated Press

Trump says he’s not backing down on tariffs, calls them ‘medicine’ as markets reel

President Donald Trump said Sunday that he won’t back down on his sweeping tariffs on imports from most of the world unless countries even out their trade with the U.S., digging in on his plans to implement the taxes that have sent financial markets reeling, raised fears of a recession and upended the global trading system.

Speaking to reporters aboard Air Force One, Trump said he didn’t want global markets to fall, but also that he wasn’t concerned about the massive sell-off either, adding, “sometimes you have to take medicine to fix something.”

His comments came as global financial markets appeared on track to continue sharp declines once trading resumes Monday, and after Trump’s aides sought to soothe market concerns by saying more than 50 nations had reached out about launching negotiations to lift the tariffs.

“I spoke to a lot of leaders, European, Asian, from all over the world,” Trump said. “They’re dying to make a deal. And I said, we’re not going to have deficits with your country. We’re not going to do that, because to me a deficit is a loss. We’re going to have surpluses or at worst, going to be breaking even.”

The Associated Press

Asian markets plunge as tariff fallout intensifies

Asian markets plunged on Monday following last week’s two-day meltdown on Wall Street, and U.S. President Donald Trump said he won’t back down on his sweeping tariffs on imports from most of the world unless countries even out their trade with the U.S.

Tokyo’s Nikkei 225 index lost nearly 8% shortly after the market opened on Monday. By midday, it was down 6%. Hong Kong’s Hang Seng dropped 9.4%, while the Shanghai Composite index was down 6.2%, and South Korea’s Kospi lost 4.1%.

U.S. futures also signaled further weakness.

Market observers expect investors will face more wild swings in the days and weeks to come, with a short-term resolution to the trade war appearing unlikely.

The Associated Press