ChainCatcher news, according to Jinshi reports, global stock markets plummeted on Thursday as President Trump's comprehensive tariff plan initiated a trade war with widespread implications for the global economy. Public fears of rising prices and the potential for economic slowdown or even recession led to a sharp decline in U.S. stock indices, recording the worst single-day performance since September 2022.Clothing and retail companies led the decline, with Williams-Sonoma, Ralph Lauren, and Deckers Outdoor all dropping over 17%. Technology and tech retail stocks such as HP, Best Buy, and Garmin fell by at least 15%. The Magnificent 7 stocks, which have driven the market higher over the past two years, also generally declined, with Apple and Amazon both down more than 8%. Over 400 stocks in the S&P 500 index fell.The S&P 500 index is currently down 4.1%, on track to record its largest single-day drop since September 2022.The Nasdaq's decline once widened to 5.8%, poised to mark its largest single-day drop since March 2020.The Dow Jones is down about 3.4%, likely to record its largest single-day drop since September 2022.

ChainCatcher news, BitMEX co-founder Arthur Hayes stated, "Trump's tariff plan further proves his commitment to reversing these imbalances. The issue for U.S. Treasuries is that without dollar exports, foreign investors cannot purchase bonds. The Federal Reserve and the banking system must intervene to ensure the normal functioning of the Treasury market, which means restarting loose monetary policy (Brrrr)."

ChainCatcher news, market analyst Allison Morrow stated that for Trump, who promised to lower consumer prices on the first day of his campaign, his first major economic initiative is a set of policies that are almost guaranteed to have the opposite effect. Tariffs will raise prices, suppress economic growth, and make it more likely for the U.S. to fall into recession. Critics of tariffs are concerned about the fundamental contradiction in Trump's plan, as he believes tariffs are a panacea for the economy that can restore America's manufacturing strength, rebalance trade, and bring in substantial funds to help the U.S. pay off its deficit and alleviate the tax burden on Americans. While tariffs can achieve some of these goals, it is impossible to accomplish all of them simultaneously.

ChainCatcher news, International Monetary Fund (IMF) spokesperson Julie Kozack stated on Thursday that the organization is continuing to assess the impact of U.S. President Trump's tariff plan (including the new 25% auto tariff), but its baseline forecast does not anticipate an economic recession in the United States.When asked about Trump's tariff plan at the IMF's regular press conference, Kozack said that tariffs imposed on goods from Canada and Mexico, if sustained, would have a "significant adverse impact" on the economic outlook of those countries, but she declined to provide specific details. She stated that the IMF is continuing to evaluate the impact of the various tariff measures announced by Trump on other regions.

ChainCatcher news, European Central Bank board member Patsalides warned that if U.S. President Donald Trump follows through on his threatened trade tariffs, the European economy could ultimately fall into stagflation. The Central Bank of Cyprus governor stated in Nicosia on Thursday, "Trade tensions are escalating, and if trade restrictions become a reality, the result could be inflation, economic recession, or worse, stagflation."He noted that while there is room to continue lowering borrowing costs, it should be done "at a steady pace and magnitude."