Title: China–US Clash Triggers Market Meltdown: $1.5 Trillion Wiped Out After Trump’s Warning
Global markets plunged on Friday after former U.S. President Donald Trump launched a fresh offensive against China
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Global markets plunged on Friday after former U.S. President Donald Trump launched a fresh offensive against China, threatening to impose 100% import tariffs on Chinese goods. The announcement sparked panic selling, wiping out an estimated $1.5 trillion from global stock valuations in a single day.
Trump accused China of “economic deception” and “stealing American jobs,” vowing to take aggressive trade action if he returns to power. In response, Beijing announced tighter export controls on rare earth materials and lithium-ion battery components, both crucial to the tech, defense, and electric vehicle industries.
Global Markets in Free Fall
The confrontation hit markets hard:
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The S&P 500 tumbled 2.7%, while the Nasdaq slumped 3.6%.
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The Philadelphia Semiconductor Index crashed 6.3%.
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European and Asian markets also saw heavy outflows as investor sentiment turned sharply negative.
Analysts say the selloff reflects fears of a renewed trade war that could fuel inflation, supply chain disruptions, and slower global growth.
Analysts Call It a “Crisis of Confidence”
“This isn’t just a market correction — it’s a confidence crisis,” said a senior strategist at a U.S.-based investment firm.
“Whenever Trump signals hostility toward China, investors read it as a policy shift — and that’s enough to trigger global panic.”
What Comes Next
All eyes are now on Beijing’s next move. If China tightens export restrictions further, pressure could mount across semiconductors, electronics, and the auto sector. Meanwhile, business leaders in the U.S. are urging Trump and policymakers to separate campaign rhetoric from economic decisions to avoid lasting damage.
Economists warn that if both powers continue to escalate, this could turn into the most severe economic shock since the 2020 pandemic.
