Global stocks fell again on Monday, with markets from Asia to Europe extending last week’s declines as investors digested new threats of tariff escalation from the Trump administration. At the close, the S&P 500 slipped 0.2%, the Dow Jones Industrial Average fell 349 points, or 0.9%, and the Nasdaq Composite inched up 0.1%.
The selloff came days ahead of a scheduled rollout of sweeping U.S. tariffs on as many as 60 countries, part of a broader trade overhaul that has unsettled governments and investors alike. On Monday, President Donald Trump went even further to suggest the United States could impose an additional 50% in duties on Chinese goods if Beijing follows through on newly announced retaliatory measures.
U.S. equities initially rebounded in early trading, buoyed by speculation that Washington might ease off some tariff provisions for some Asian countries. The S&P 500 rose as much as 2.9% before paring gains. The Dow Jones Industrial Average briefly advanced 705 points, or 1.7%, while the Nasdaq Composite added 2.6% after a volatile stretch.
The brief uptick followed comments from Trump’s economic adviser Kevin Hassett, who said the administration might explore a 90-day delay in applying tariffs to some Asian partners, excluding China. “I think that the president is going to decide what the president is going to decide,” Hassett told Fox News. However, his remarks were quickly contradicted by a statement by the White House calling the reports “fake news.”
Trump reinforced the administration’s position in a post on Truth Social, warning that unless Beijing reverses its 34% retaliatory tariffs by April 8, his administration would raise existing duties by 50% starting the following day. “Additionally, all talks with China concerning their requested meetings with us will be terminated! Negotiations with other countries, which have also requested meetings, will begin taking place immediately,” Trump added.
Asian markets took the brunt of Monday’s fallout. Hong Kong’s Hang Seng Index dropped 13.7%, its sharpest single-day loss since the 1997 handover. Japan’s Nikkei 225 lost 7.9% to close at 30,792.74, marking its lowest level since October 2023. All components of the index closed lower. The broader Topix Index fell 8%, while its banking sub-index dropped more than 17%.
In Europe, selling pressure spread to major bourses. Milan’s FTSE MIB lost more than 5%, leading losses across the eurozone as Paris’ CAC 40, Frankfurt’s DAX and London’s FTSE dropped more than 4 percent each.
European Commission President Ursula von der Leyen said Monday that the bloc remained open to negotiations with Washington as she offered the prospect of eliminating industrial tariffs on both sides of the Atlantic. However, she also cautioned Brussels is “prepared to respond through countermeasures and defend our interests.”
“We stand ready to negotiate with the U.S.,” von der Leyen told reporters alongside Norwegian Prime Minister Jonas Gahr Støre after meeting with representatives from the steel and metals industry. “We have offered zero-for-zero tariffs for industrial goods as we have successfully done with many other trading partners. Because Europe is always ready for a good deal. So we keep it on the table,” she said.
Fixed income markets, meanwhile, apparently reflect a rush to safer assets. Yields on the benchmark 10-year German Bund dropped to 2.59% from 2.72%, while U.S. two-year Treasury yields fell to their lowest level since September 2022, signaling investor concerns about near-term growth.
On Sunday, Mr. Trump also reiterated calls for the Federal Reserve to lower interest rates, posting that it was the “PERFECT time” for Chair Jerome Powell to cut. Powell, speaking Friday, acknowledged the potential macroeconomic risks in the form of “both higher unemployment and higher inflation.” “While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent,” he said during a conference just outside Washington, DC.
Market strategists speculate moves in commodities and digital assets may reflect early signs of broader dislocation. On Monday morning, Brent crude had fallen 2.09% to $64.21 a barrel, while West Texas Intermediate was down 2.58%, trading at $60.39. The continued downside pressure followed Friday’s steep selloff, during which both benchmarks lost roughly 8%, breaching multi-year support levels and settling at their lowest since 2021.
Bitcoin slipped to $76,000 on Monday, marking its weakest performance since February. The digital currency tumbled nearly 12% over the weekend, wiping out more than $180 billion in market value. Other major cryptocurrencies like Ethereum and Solana also suffered sharp losses, adding to concerns that financial conditions could tighten rapidly if the trade standoff escalates further.
