Market Decline Deepens as US Tariffs Hit Cross-Border Trade

Markets tumble worldwide as US President Donald Trump’s tariffs threaten cross-border trade links and raise risks of a global downturn

Global financial markets are in turmoil following a dramatic sell-off triggered by extensive new import tariffs implemented by US President Donald Trump. The S&P 500 teeters on the edge of a bear market, whilst oil prices decline and major stock indices across Asia and Europe have nosedived. Beneath this market turbulence lies a more profound narrative – the disruption to worldwide supply chains and the consequent strain on industries constructed upon cross-border manufacturing and commerce. President Trump’s resolution to enforce sweeping new tariffs has sent ripples throughout the global economy. These countries have evolved into vital components within the supply chains of American companies, manufacturing everything from athletic apparel and clothing to electronics and consumer goods. Vietnam and Bangladesh, two of the world’s most rapidly expanding export centres, now confront tariffs of 46% and 37% respectively. These nations have become essential to American brands such as Nike and Lululemon. According to the Bangladesh Garment Manufacturers and Exporters Association, Bangladesh alone exports US$8.4bn worth of garments to the US annually. Qian Wang, Asia Pacific Chief Economist at Vanguard, states: “Asia is bearing the brunt of the US tariff hike. This is negative to the global and Asia economy, especially those small open economies, both in the short term and long term.”