Global markets suffered their worst single-day decline in a decade Monday as President Donald Trump doubled down on sweeping import tariffs, declaring on Truth Social that “only the weak will fail.” The Dow Jones Industrial Average plunged 2,200 points while the S&P 500 and Nasdaq fell 6% and 7.4% respectively, erasing $3 trillion in market value and sparking fears of an impending recession.

Trade Shockwaves Rattle Investors

Trump’s controversial comments came hours after his administration imposed 20% tariffs on European imports, targeting automotive and agricultural goods. The move triggered panic selling across exchanges from Frankfurt to Tokyo. “This isn’t ordinary volatility – we’re seeing systemic fear,” said Merrill Lynch chief strategist Karen Wu. She noted the VIX volatility index surged 45%, its sharpest rise since the 2020 pandemic crash.

White House Battles Economic Warnings

Federal Reserve Chair Jerome Powell issued rare public criticism, warning the tariffs could accelerate inflation and stall growth. “Unilateral trade measures create cascading risks,” Powell stated during an emergency press briefing. His comments contradicted Trump’s claims that the tariffs would boost domestic manufacturing.

The president remained defiant during a Mar-a-Lago press conference, flanked by advisors Stephen Miller and Marco Rubio. “This surgical strike will fix decades of bad trade deals,” Trump insisted, comparing the market plunge to “post-surgery bruising.” He dismissed concerns about rising consumer prices, claiming “real Americans want factory jobs, not cheap TVs.”

Global Fallout Accelerates

European Commission President Ursula von der Leyen announced retaliatory tariffs targeting $45 billion in U.S. exports, including bourbon and motorcycles. The EU measures take effect April 9, potentially escalating into a full trade war. Asian markets followed Wall Street’s nosedive, with Tokyo’s Nikkei losing 8% in early trading – its steepest drop since the 2011 tsunami.

Domestic Pushback Intensifies

Senate Majority Leader Chuck Schumer revealed bipartisan legislation to curb presidential tariff powers. “We’re witnessing economic arson,” Schumer told reporters. Corporate leaders joined the criticism, with Nintendo delaying its Switch 2 launch over component cost uncertainties. Small business owners like Ohio manufacturer Luis Gutierrez reported 30% price hikes on steel. “These policies help billionaires, not Main Street,” Gutierrez said.

Despite mounting opposition, Trump allies defended the strategy. Secretary of State Marco Rubio claimed “short-term pain guarantees long-term gain,” while advisor Stephen Miller accused critics of “economic surrender mentality.” The administration released projections showing potential automotive job growth, though economists dispute these figures.

Consumers Brace for Impact

Grocery chains warned of imminent price increases for European cheeses and wines. Auto dealers predicted $5,000 jumps for popular SUV models. “This hits families where it hurts,” said Consumer Advocate Group director Emily Torres. Her organization estimates the tariffs could cost average households $2,800 annually.

As analysts debate whether this marks a market correction or full collapse, millions of Americans face shrinking retirement accounts and uncertain job prospects. With no signs of policy reversal, economists warn the turbulence may continue through summer. “We’re in uncharted territory,” said former Fed Chair Janet Yellen. “The rules of economic engagement are being rewritten overnight.”