Threat of deepening trade war on eve of Trump’s ‘Liberation Day’ spooks investors across US, Asia-Pacific and Europe

Summary

Global stock markets fell sharply Monday after Donald Trump signaled new U.S. tariffs set for Wednesday would target “all countries,” heightening fears of a broad trade war.

Asian and European indices dropped, with Japan’s Nikkei down 4% and Germany’s DAX falling over 1%. Gold hit a record $3,128 as investors fled to safe assets.

Economists warned of rising inflation and falling consumer confidence. Goldman Sachs raised U.S. recession odds to 35%, projecting further S&P 500 losses.

Trump dismissed car price concerns, intensifying market anxiety over long-term economic fallout.