Markets continue to fall due to Trump's tariffs, and there are protests in the United States. What the media is writing
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- Markets continue to fall due to Trump's tariffs, and there are protests in the United States. What the media is writing
The tariff policy of US President Donald Trump continues to negatively affect global markets. Stock exchanges in Europe, Asia and the United States are declining, while Trump refuses to lift tariffs, and his administration denies the onset of recession. At the same time, the most massive protests against the president took place in the United States after his inauguration. What the world's media write about what is happening is in the Izvestia digest.
CNN: Global markets continue to fall
On April 7, global markets continued to fall, caused by the US trade war and China's harsh response to high tariffs. Germany's Dax index opened down 9%, while London's FTSE fell by about 5%. The Japanese Nikkei 225 index showed a decrease of 7.9%, while the broader Topix ended the day with a decrease of 7.7%.
CNN
In mainland China, where markets resumed operations after public holidays, the Shanghai Composite index closed 7.3% lower. The CSI300 blue-chip index also lost about 7%. In Hong Kong, the benchmark Hang Seng index last traded just under 12% lower. Chinese tech giants Alibaba and Tencent lost more than 14% and 10%, respectively.
This was a reaction to the fact that American stocks fell sharply on April 4 after China announced duties of 34% on all American goods. US stock indexes are expected to open sharply lower on April 7, as a result of which the S&P 500 index will decline by 20% compared with its peak value.
Bloomberg: shares of European defense companies hit the sell-off
Shares in the defense sector took the brunt of the sell-off on European stock markets. The massive outflow of funds from risky assets has undermined the sector, which has been performing the highest in the region this year. Shares of Germany's Rheinmetall fell 27%, marking the sharpest one-day drop, before quickly reducing the drop to 8%. Other stocks that saw a drop included France's Thales, Germany's Hensoldt, Italy's Leonardo and Sweden's Saab.
Bloomberg
The sector's big gains this year have made it an obvious target for investors seeking to reduce exposure to risky assets in light of President Donald Trump's tariff announcements.
The news that American Howmet Aerospace, which supplies parts for Airbus and Boeing aircraft, announced force majeure after the tariffs were imposed, further dampened the mood. Analysts say that an increase in defense spending in Europe has not yet occurred, so the sector is subject to general sales.
Associated Press: Trump refuses to lift tariffs
Trump said on April 6 that he would not back down from his massive import duties on most countries around the world until they align their trade with the United States. Speaking to reporters aboard Air Force One, he said he did not want global markets to fall, but he was not worried about a large-scale sale, adding: "Sometimes you have to take medication to fix something."
Associated Press
"I've spoken to many leaders, European, Asian, from all over the world," Trump said. "They're dying to make a deal." And I said, we won't have a deficit with your country. We are not going to do this, because for me, a deficit is a loss. We will have a surplus or, in the worst case, we will break even."
Commerce Secretary Howard Lutnik said there would be no postponement of the duties and they would remain in place for several weeks. According to him, Trump needs to reset global trade. At the same time, several Republican senators signed a new bipartisan bill that would require the US president to justify the new tariffs to Congress, otherwise they would lose their force.
The Washington Post: The Trump administration defends tariffs
Representatives of the Trump administration actively defend the duties imposed by the president. They claim that import duties are already forcing dozens of countries to sit down at the negotiating table with the United States. Agriculture Secretary Brooke Rollins said 50 countries are "tapping into the White House's phone lines" to discuss tariffs with Trump.
The Washington Post
Although she insisted that the drop was the result of an "adjustment" of the markets, Rollins acknowledged the short-term uncertainty for American farmers, noting that the White House is ready to provide them with financial assistance if necessary. Some countries criticized by Trump for imposing tariffs on American imports, such as India, are doing this to keep prices stable for their own farmers.
Treasury Secretary Scott Bessent said the U.S. economy remains strong and there will be no recession. He called the $6 trillion stock market plunge a short-term reaction and compared the current moment to the early days of Ronald Reagan's presidency. According to him, tariffs are a "one-time price adjustment" rather than a source of long-term inflation.
The New York Times: mass protests against Trump took place in the United States
On April 5, mass protests against Trump's policies took place in the United States. Rallies were planned in all 50 states. The organizers said that more than 600,000 people had registered to participate. Trump himself ignored the protests and spent the day playing golf in Florida.
The New York Times
Rob Ahlrichs, a Baltimore resident who took part in the protest in Washington with his two sons and wife Catherine Sterner, hung a poster with a graph depicting a sharp drop in stock indexes and the inscription: "Did you vote for this?" 65-year-old Marilyn Finner, who works in customer service in Chicago, said she had never participated in the protests, but felt it necessary to take part in Saturday's rally because she was afraid of losing her pension payments.
During the demonstrations, the Democratic Party was also criticized for not resisting Trump enough. The protesters spoke out against cuts to social security programs, the dismissal of civil servants and the deportation of migrants. People also expressed concerns about their retirement savings and fair elections in the future.
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