⚠️ Introduction

The world’s financial markets are in chaos. In just a few days, trillions of dollars have been wiped off the global stock market. The reason? A wave of new tariffs introduced by US President Donald Trump — hitting nearly all major US trading partners, including the EU, China, and beyond.

As investors panic and major indices drop sharply, one big question is echoing worldwide:

Are we on the brink of a global recession?

💣 What's Happening?

On Monday, April 7, stock markets across Asia, Europe, and North America experienced a third straight day of massive losses. This steep downturn is being linked directly to Trump's aggressive tariff policy, which has created:

• Higher manufacturing costs

• A spike in inflation

• Reduced business confidence

• Supply chain disruptions

• Wild market volatility

📉 Market Mood: Uncertainty Everywhere

President Trump’s response to the crash?

"Sometimes you have to take medicine to fix something."
— Trump aboard Air Force One

While some saw this as confidence, markets read it as a signal that things might get worse before they get better. Investors fear that the tariffs might lead to long-term instability in global trade.

📊 Recession Risk Rising

According to JP Morgan, the risk of a global recession by the end of 2025 is now at 60%, up from 40% just a week ago. That’s a significant jump — and not one to take lightly.

Meanwhile, Deutsche Bank released a statement calling Trump’s tariff policy a move with:

“Immense global implications for 2025 and the years and decades ahead.”

From the US to China, and across Europe, businesses are starting to reassess investments and spending.

🌐 Manic Monday: Asia Hit Hard

Markets across Asia were the first to feel the shock on Monday morning. Panic selling led to steep declines in the Nikkei, Hang Seng, and Shanghai Composite indexes. This domino effect is now moving westward, hitting European exchanges and sending warning signals to Wall Street.

🧠 What Can We Learn?

For German learners and global citizens alike, this event teaches us how deeply connected our economies are. Policies in one country can affect people, businesses, and prices all over the world.

Key German vocabulary to explore:

• Zölle – tariffs

• Rezession – recession

• Aktienmarkt – stock market

• Handelskrieg – trade war

• Globale Auswirkungen – global effects
  
  

🧭 Final Thought

The markets may eventually bounce back — they usually do. But what happens next will depend not just on numbers, but on decisions made by world leaders. For now, investors and everyday people alike will be watching, waiting, and hoping for stability.

Written by Team Deutsch Bhasha
Based on reporting by Deutsche Welle