President Donald Trump’s tariffs caused chaos in global markets, with U.S. government borrowing costs surging and stocks experiencing volatile trading. Major U.S. stock indexes swung back and forth, reaching positive territory but remaining on the edge of entering a bear market. The tariffs led to an increase in interest rates on U.S. government debt, potentially prompting Federal Reserve intervention to stabilize the bond market. China retaliated with increased tariffs on U.S. goods, while the European Union was set to approve retaliatory tariffs. JPMorgan Chase CEO Jamie Dimon warned of a U.S. recession due to the tariffs and resulting trade war. Former Treasury Secretary Lawrence Summers raised concerns about a potential financial crisis as interest rates rose and stock markets fell. Despite this, Trump was doubling down, urging businesses to move operations to the U.S. and promising zero tariffs. Treasury Secretary Scott Bessent dismissed concerns about rising borrowing costs and China’s retaliatory measures, pointing out the trade imbalance. Major U.S. firms like Walmart and Delta Air Lines withdrew earnings guidance due to uncertainty caused by the tariffs. The situation remains volatile and uncertain, with potential implications for the U.S. economy and global financial stability.
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