The storm of Trump’s Tariffs hit the global market hard. Markets have plunged as Trump unravels a wave of aggressive tariffs globally. At the beginning of April, the sweeping tariffs swept away the global market, and the crash can be seen tumbling upon stock markets across the world.
On April 7th, 2025, the market hit multi-year lows., This hinted towards a global recession situation following the harsher-than-expected US tariffs by President Donald Trump. Following the Black Monday Scenario, the impact is not just felt in markets— the world market got affected.
The talks about Tariffs and their implementation began to impact the market. Let us discover the market’s current scenario.
Global Market Crash: A Sneak Peek at Affected Sectors
Owing to the slowdown of stock markets, there’s a widespread disruption of economies, industries and economies. Triggered by a combination of factors– the crash has led to a sharp decline in indices, plummeting values risk across global markets.
In 2025, we see the trade has witnessed a downturn. We’ve extracted stats from Export Genius dashboard. The crash has led to sharp decline in stock indices and even on industries like:
- Metals
Tariffs or trade restrictions between the major economies such as US China can distort the metal flows and create imbalances in supply and demand. In the beginning of 2025, the trade activity witnessed a gradual decline in imports and exports to top metals.
Even the imports have witnessed a sharp decline in the Iron and Steel reflecting weakening domestic demand and global trade uncertainties.
The same can be witnessed for Articles of Iron and Steel. Refer to the chart below, where you will see the gradual decline by February.
The steep decline in trade can also be witnessed in the imports of Articles of Iron and Steel Globally. The major importing countries like USA, Canada, Australia etc. have witnessed a gradual decrease.
- Pharmaceutical Products
The crippling effects of the Global recession can be witnessed in the Pharmaceutical sector. The economic downturns can further lead to reduced healthcare. We have extracted the latest stats from Export Genius to get a fair share idea of the market view and there has been a slight downward curve on the imports and exports of Pharmaceuticals. Leading exporting countries like Switzerland, United States have seen 2-3% of decline.
The global recession has significantly impacted the import of pharmaceutical products across various countries. A slight downward curve can be witnessed with almost all the countries importing pharmaceutical products.
- Minerals
The recession’s impact can be traced with the impact on the export and import of mineral fuels. As economic activity slows, demand for energy, including oil, coal and natural gas declines. The tariff’s effects have heavily affected the price parity further intensifying the supply chain disruptions making the mineral fuels market more volatile and uncertain— making the mineral fuels market more volatile and uncertain during the global economic downturn.
Why is Global Market Crashing? Overview of its Fatal Fall
Markets are experiencing elevated uncertainty, which is expected to persist for an extended period. A trade war has been initiated by Trump, and retaliatory tariffs from China, the EU, and other nations appear imminent.
1. Rise in Tariff Fame-Game By Trump
From April onwards, Donald Trump back to back trade tensions by implementing a universal 10% baseline tariffs on U.S. imports. Recently, China and the US moved towards an all-out trade war after Trump imposed a whopping 104 per cent in tariffs. Generally, the trade surpluses face elevated tariffs: India (26%), China (34%), EU (20%), South Korea (25%), Vietnam (46%), Taiwan (32%) and Japan (24%).
2. Global Markets Crashing Down
Sharp declines hit Wall Street with S &P 500 shedding As of April 8, 2025, the S&P 500 closed down at 79.48 points with the index losing 45.83 trillion in market value over the previous four days.
Is There a Sign of Recession?
Yes, a global market slowdown, especially reflected in major indices like the S&P 500, may contribute to a recession like situation.
- Investor Sentiment Drops: A falling S&P 500 often reflects declining investor confidence, which can reduce investment and spending.
- Corporate Impact: Lower stock prices hurt companies’ ability to raise capital, invest, and hire — potentially leading to layoffs and slower growth.
- Global Interlinkages: Since many S&P 500 companies operate globally, a slowdown may signal or contribute to weakening international demand, affecting global supply chains and trade.
- Tighter Financial Conditions: A market downturn can make credit more expensive or harder to obtain, which slows business activity.
Bottom Line
As global markets crash is wreaking havoc in countries due to mounting pressure from trade tensions, policy shifts, and economic uncertainties, the ripple effects are being felt across industries, geographies, and asset classes. Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services encourages to have “wait and watch” approach– signalling the best strategy in this phase”
Stay tuned with Export Genius — your trusted partner in global trade intelligence sharing market insights, expert analysis and data-driven trends empowering your business decisions.
