$30 Billion Lost in Australian Stocks Over Trump Tariff Fears

The Aussie share market had a rough start today, taking a big hit after a wild session on Wall Street. Investors are on edge as concerns grow that Trump’s latest round of tariffs could push the world into a recession.

When the ASX opened this morning, more than $30 billion was wiped off, with the market dropping 101.6 points (1.3%) right out of the gate. That puts it at a seven-month low—ouch.

This comes after the US stock market had a meltdown on Monday (Tuesday AEDT). The S&P 500 plunged 2.7%, almost 9% below its all-time high from just last month. At one point, it was down 3.6%, heading for its worst day since 2022, when inflation fears were sky-high. The Dow Jones tanked 890 points (2.1%), and the Nasdaq took a 4% dive.

So, what’s causing all this chaos? The back-and-forth on tariffs is making investors nervous. Every time there’s a new update, the market swings wildly, and people worry this uncertainty will slow the economy down. Some early signs of weakness are already showing, with economic surveys looking gloomy and a Federal Reserve Bank of Atlanta report hinting that the US economy might already be shrinking.

Trump was asked about a possible 2025 recession over the weekend and gave a classic vague response: "I hate to predict things like that." He insists tariffs are part of a "big transition" to bring wealth back to the US, but even his Treasury Secretary admits the economy might need a "detox period."

Despite all this, the US job market is still stable for now. But big banks like Goldman Sachs are already lowering their growth forecasts. Goldman’s David Mericle now predicts the economy will grow 1.7% instead of 2.2% in 2025 and says there's a 20% chance of a recession—though he thinks Trump might ease off if things get too bad.

Tech stocks, which were flying high last year, are getting hit hard. Nvidia is down 4.9%, bringing its total loss this year to 20.2% (after an insane 820% surge in 2023-24). Tesla is even worse—down 8.7% on Monday and a brutal 40% this year. Some say the brand has been hurt by Musk's ties to Trump, with protests even targeting Tesla dealerships.

It’s not just tech—companies that rely on consumer spending are struggling too. United Airlines dropped 8.3%, and Carnival Cruises lost 8.2%. Even Bitcoin isn’t safe, falling from over $106,000 USD in December to $80,000 USD now.

So, where’s all the money going? Investors are playing it safe and pouring cash into US Treasury bonds, pushing their prices up while yields drop. In times of uncertainty, stability is king.

With all this market madness, one thing’s for sure—it’s going to be a bumpy ride ahead. Buckle up!