Donald Trump’s tariff war has deepened fears of a recession in the US economy. The US stock market could not avoid this fear. Wall Street collapsed on Monday. The points of the main indices of the US Stock Exchange fell sharply. Nasdaq fell by 4 percent, S&P 500 by 2.7 percent and Dow Jones fell by about 890 points.

Due to this, $ 4 trillion disappeared from the stock market of the world’s largest economy, which is about 3 crore 49 lakh 40 thousand 784 crore rupees in Indian currency.

Market volatility begins
Although Monday’s decline was deep, volatility has begun in the US stock market for the past few weeks. The S&P 500 reached its highest level on February 19, but has fallen by 8 percent from that peak. Nasdaq reached an all-time high last December, from which it has fallen by 10 percent. This decline has caused a major blow to the share prices of US technology companies. Share prices of Microsoft, Nvidia, Tesla, Meta, and Alphabet fell between 4 and 11 percent.

Trump’s policies and market reaction
Some market experts believe that Donald Trump’s policy actions are the main reason for this instability. The imposition of 25 percent tariffs on Canada and Mexico, an additional 10 percent tariff on Chinese goods, and the threat of reciprocal tariffs on goods from various countries have spread fear among investors. As a result, the fear of a recession in the world’s largest economy is becoming increasingly clear. Experts say that if the tariff war continues, price increases in the US domestic market may intensify, which will increase the cost of living of the common man.

Impact on the Indian market
The shadow of the collapse of the US market may also fall on the Indian stock market on Tuesday. According to experts, the Sensex and Nifty50 may start in the negative. Gift Nifty is already down on Tuesday. With this, the pressure of foreign investment to withdraw from the Indian market has not yet subsided. This situation in the US market may increase complications for India. There is also a risk of volatility in the IT and pharma sector stocks.

Experts’ warning
Market analysts say that Trump’s tariff policy may have a short-term and long-term impact on the US economy. The tariffs will increase the price of imported goods, which may lead to an increase in production costs and consumer prices. In addition, retaliatory tariffs from Canada, Mexico and China may harm US exports. In this situation, investors are selling shares to avoid risk, which is one of the reasons for the market collapse.