President Donald Trump’s new tariffs sent shockwaves through global financial markets on Thursday, with the dollar and U.S. stocks among the hardest hit on fears that a broadening trade war would push an already fragile world economy into recession.
Trump’s 10% baseline levy on all U.S. imports, with much higher duties imposed on some countries, sent investors fleeing risky assets as they worried Trump was upending global trade.
And, with the prospect of higher prices in an already slowing U.S. economy that depends on the consumer for growth, investors bet on a much higher likelihood for a recession.