Wall Street reels as global sell-off intensifies; economists warn of recession ahead
By South County Mail Staff Writer
Global markets took a nosedive late last week after former President Donald Trump announced a sweeping new set of tariffs – and the financial shockwaves are being felt from New York to Missouri.
The US stock market saw its worst losses in years on Friday, with the S&P 500 dropping 6 percent, the Dow Jones falling 5.5 percent, and the tech-heavy Nasdaq losing nearly 6 percent. As markets open this Monday morning, April 7, investors across the country – including here in South County – are bracing for more potential losses.
Tariffs trigger chaos
The sell-off began after Trump announced new tariffs targeting several countries, most notably China. Beijing responded with its own set of retaliatory tariffs, sparking fears of an all-out trade war.
Asian markets tumbled early Monday in reaction. Japan’s Nikkei 225 lost 7.1 percent, Taiwan’s main index fell nearly 10 percent, and South Korea’s Kospi dropped 5.5 percent. Australia’s stock market shed over $100 billion in value in a single day.
The global fallout so far has wiped out more than $9 trillion in market value.
Trump defends the move
Trump has stood by the tariffs, calling them “medicine” that the US economy needs. Over the weekend, he even shared a social media post suggesting the stock market crash was intentional – a statement that sparked immediate backlash.
His administration is presenting a united front. “The tariffs are coming,” said Commerce Secretary Howard Lutnick on Sunday. But others, like economist and former Trump adviser Kevin Hassett, denied that the crash was part of any broader strategy.
Divided in Washington
The political reaction in Washington has been sharply split. Some Republican allies have called for the tariffs to be made permanent, claiming they’ll protect American jobs.
But others, including high-profile GOP senators like Mitch McConnell and Ted Cruz, have warned that tariffs could hurt working Americans – especially those in agriculture and manufacturing-heavy states like Missouri.
Democrats are pushing for new legislation that would rein in the president’s ability to impose tariffs without Congress. One proposal already in the works would ban the tariffs outright.
What the experts are saying
Economists are sounding the alarm. JPMorgan now estimates a 60 percent chance of a global recession. The firm is forecasting a 0.3 percent contraction in US GDP by the end of 2025 and predicts unemployment could rise to 5.3 percent next year.
Others are warning of stagflation – a combination of stagnant growth and rising prices – as supply chains tighten and consumer goods become more expensive.
For families in South County and across Missouri, that could mean higher grocery bills, more expensive imports, and increased uncertainty about jobs and the local economy.
Why it matters to South County
Missouri’s economy is tightly connected to agriculture, automotive manufacturing, and exports – all sectors that could be affected by rising tariffs and foreign retaliation. If the trade war escalates, local farmers, small business owners, and workers in major industries could feel the squeeze.
At the same time, the volatility in financial markets could hit retirement funds, pensions, and 401(k)s, leaving many families nervous about their long-term savings.
Stay informed
SouthCountyMail.com will continue to follow this developing story closely. For updates on how national policy decisions affect our local economy, sign up for our newsletter or follow us on social media.
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