Global markets experienced a dramatic downturn on Monday after Donald Trump reaffirmed his aggressive approach to tariffs. This announcement triggered heightened concerns about a potential recession, resulting in significant stock market losses. US futures pointed towards a 3-4% decline, mirroring the steep drops observed across major indices worldwide. The Hang Seng index in Hong Kong plummeted over 10%, while European and Asian markets also witnessed declines as investors sought refuge in safer assets, leading to a dip in bond yields globally. Goldman Sachs now predicts a 45% probability of a US recession fueled by the financial pressure stemming from Trump’s new tariffs. The President defended his actions, stating that they generate billions of dollars and are vital for addressing trade imbalances with countries like China and the EU. In response, China imposed retaliatory tariffs of 34%. The market turmoil has resulted in a staggering loss of over $5 trillion in US stocks over just two days, marking the worst week since the pandemic crash in 2020. Even some of Trump’s supporters, including prominent investors Bill Ackman and Stanley Druckenmiller, expressed concern about his strategy, fearing potential damage to US reputation and economy.