A massive upheaval has rocked global financial markets as retaliatory tariffs imposed by United States on nearly 70 countries, coupled with China’s swift counterstrike, triggered a historic collapse in US stock market.

Over the past two days, Wall Street witnessed its steepest decline since the 2020 COVID-19 pandemic, erasing roughly $5 trillion in market value according to Reuters. Analysts warn this could signal a deeper crisis for the global economy, potentially rivaling the most significant disruptions in decades.

The turmoil began shortly after President Donald Trump, sworn in for his second term, announced sweeping tariffs targeting major trading partners. Within 48 hours, China retaliated, slapping an additional 34% duty on all US goods.

The fallout was immediate: Nasdaq index plummeted, and Wall Street’s losses snowballed into a second consecutive day of heavy selling last Friday. Investors, gripped by panic, watched helplessly as markets bled value.

Since Trump’s inauguration, the US stock market has shed approximately $8 trillion, intensifying fears of a prolonged economic downturn. “This isn’t just a market correction—it’s a structural shock,” said Michael Feroli, chief economist at JPMorgan.

He cautioned that US GDP could shrink by year-end, with unemployment likely to spike. Feroli also flagged a 60% chance of a global recession, noting that the ripple effects of a US slowdown would batter economies worldwide.

The crisis has hit the world’s wealthiest hard. Bloomberg’s wealth index reported that the top 500 billionaires lost $208 billion in a single day. Meta’s shares dropped 9%, costing CEO Mark Zuckerberg $17.9 billion—roughly 9% of his fortune. Amazon’s stock also fell 9%, with founder Jeff Bezos losing $15.9 billion. American tycoons bore the brunt, but the pain spread globally.

Beyond Wall Street, markets across Asia and Europe buckled. Japan’s Nikkei 225 sank over 2,600 points, while Hong Kong’s Hang Seng index slid 9.8%. In India Bombay Stock Exchange crashed 4,000 points, and the National Stock Exchange’s Nifty index shed 1,000 points—marking the country’s worst market rout in 10 months.

Within seconds, India’s capital markets lost $240 billion. Pakistan’s Karachi Stock Exchange halted trading for 45 minutes after a 5% plunge in its benchmark index.

Public outrage in the US has boiled over. Protesters in all 50 states are organizing over 1,200 rallies, targeting Trump and billionaire ally Elon Musk. Social media posts from Trump, projecting optimism, have failed to calm nerves.

While the president golfs, critics slam his detachment as markets burn. “America will emerge stronger,” Trump declared, insisting the tariffs would slash the US trade deficit with countries like China. Yet, with no sign of backing down, his policies have sparked a diplomatic frenzy.

Over 50 nations, including staunch ally Israel, have rushed envoys to Washington. Israeli Prime Minister Benjamin Netanyahu arrived amid heightened tensions, while Japan pleads for tariff relief.

Chaos has spilled into commodities. Gold prices dipped 0.2% to $329 per ounce, and Brent crude oil fell nearly 3% to $63.73 per barrel. Analysts predict further declines if recession fears tighten their grip.

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Experts agree a full-scale trade war benefits no one. “It’s a lose-lose scenario,” said one Indian analyst. “Global GDP growth will stall, and recovery could take years.” With tariffs set to take effect April 9, markets brace for more volatility. As nations scramble to counter the fallout, the world teeters on the edge of an economic abyss with Trump’s gamble at its center.