The oldest week for US stocks after Covid's crash as China avenges

Stock market turmoil deepened on Friday as China hit the tariffs announced by US President Donald Trump, raising the likelihood of an extended trade war and damage to the world economy.

All three major US stock indexs have immersed more than 5%, with the S&P 500 dropping almost 6%, limiting the smallest week for the US stock market since 2020.

In the UK, the FTSE 100 has been submerged almost 5% – its largest decline in five years, while Asian markets also dropped and exchanged in Germany and France has encountered similar dowels.

Trump, who has sworn to rework the global trade order, has rejected fears about market shock, noting that the US labor market is strong.

“Hang hard,” he urged his followers on social media. “We can't lose.”

The global stock market has lost trillions as Trump has announced another 10% taxes on the import of goods from each country, such as products from dozens of countries, including key trading partners such as China, the European Union and Vietnam, face far higher percentages.

Analysts say the moves, some of which should come into force immediately after Saturday, amounted to the largest increase in US tax in 1968.

They expect the measures to lead to shrinkage in trade and have warned that they can bring many countries into an economic recession.

China responded to Trump on Friday by hitting US imports of imports of 34%, limiting the export of key minerals and adding US companies to its black list, describing Trump's actions as “harassment” and violation of international trade rules.

Other countries seem to be hoping that they will be able to negotiate deals, despite controversial signals from the White House about his appetite for conversation.

Maros Chiefchicic, the EU Commerce Commissioner, who plans to take revenge, said on Friday that he had a “honest” two -hour exchange with US officials and wrote on social media that commercial relations need a “new approach”.

“The EU is committed to meaningful negotiations, but also ready to protect our interests,” he said. “We keep in touch.”

Trump's moves are in line with the promises he gave along the campaign path last year.

But they were larger than some analysts expected, activating the worst week for the 2020 stock exchange, when the Covid-19 pandemia led to global stops and other disturbances.

The sale started with companies like Apple and Nike, which rely largely to Asia suppliers. But on Friday, he moved to sectors that would not usually face the direct impact of tariffs, such as consumer brackets, healthcare and utilities.

“Frankly, the mood is quite sour and it should be,” said Mike Dixon, a head of research and quantitative strategies at Horizon Investments in the United States, warning that it will take weeks to understand Trump's tariffs.

“What we are really worried right now is what we saw at 6am (when China avenges),” he said, “How much more is it there?”

In an investor note, JP Morgan said he now puts on the chances of a global economic recession this year at 60%, compared to 40% earlier, noting that the tariff shock could lead to US growth with two percentage points this year.

Some investors have downplayed the losses, noting that they have been following the amazing saying of stock prices in the United States over the last few years.

“These changes in the market we see – they are violent because things are going much more faster than they rise,” says Tim Pallara, CEO of Tennessee -based Capwealth.

He said the White House was trying to “reset” in world trade, but effort was needed.

“We talked about the commercial imbalance throughout our career,” he said. “Nothing has ever happened. So something has to happen.

“We will equalize the conditions of playing some of these relationships that have just come out of balance.”

Spotting on Friday, Jerome Powell, head of the Federal Reserve, the US Central Bank, said it believes the economy remains “solid”, pointing to the most recent data showing strong hiring in the United States in March.

But he acknowledged a high degree of insecurity.

“What we learned is that the tariffs are higher than expected, higher than almost all forecasts for forecasts,” said G -N -Powell, warning that growth will slow down and prices are likely to rise.

In New Jersey, small business owner Pat Muscaritolo said the changes could force him to turn his store for appliances, Jacobson Appliance, after 40 years in business. He urges customers to make all the necessary purchases now.

“We don't know what the price will be at the end of the month,” he said, although preparing for items as refrigerators, which can be 30% or even with 40% higher.

On the market, home-related companies were a bright place, maybe they are betting on bets that shocks can lead to lower interest rates and help the US home market.

The shares in Nike and other clothing traders, who were rammed on Thursday, also returned a well -known foundation on Friday, overwhelmed by the hope of a deal after Trump said he had a “very productive appeal” with Vietnam leader.

Cambodia also sent a letter offering to reduce the rates and ask the US to negotiate.

But other parts of the market remained grim.

The shares in Apple, which rely to a large extent on China for production, fell over 7% on Friday. The market value of the iPhone manufacturer has dropped approximately 15% from Wednesday.

• Dow Jones fell by 5.5% by downloading it by 10% of its peak February
• Nasdaq dropped by 5.8%, eraising approximately one fifth of its value from December by putting it in the territory of “Bear Market”
• In the UK, the FTSE 100 Index closed 4.9% lower, the largest one-day decline since March 27, 2020.
• In Europe, France of CAC 40 dropped by 4.3%, while in Germany DAX fell nearly 5%
• Earlier in Japan, where the Prime Minister called the situation “national crisis”, Nikkei 225 fell by over 2.7%
• Brent Surrock, the international indicator of oil prices, also dropped almost 6%

As the route continued, even some White House allies began to criticize the measures.

In a podcast dedicated to tariffs, Republican Senator Ted Cruz of Texas said Trump's moves could lead to benefits to the United States while warning of “huge risks”.

“If we are in a 30 -day script now, after 60 days, 90 days from now on, with massive US tariffs and massive tariffs for American goods in any other country on Earth, this is a terrible result,” he said.

In the Folkland Islands, the Southern Atlantic Archipelago, Janet Robertson, general manager of consolidated Limited Fishing Fishing, wondered how a new 42% tax on his export to the United States would hit his tooth sales.

“We are not making dramatic decisions at the moment,” she said.

But, she added, the fishing is “the most important industry in the Folkland Islands.”

“Tooth sales in the United States are a big part of it,” she said.

“We wonder where it will end.”

The reporting contributed by Tom Espiner, Nada Taufik, Kai Pingliuchi and the BBC World Service.