Trump’s tariff bomb rattles global economy, fuels recession fears

Kamran Khan says U.S. President Donald Trump's aggressive tariff policy has unleashed economic chaos around the world, triggering panic in global markets and raising fears of a global recession.

"Markets from Asia to Australia and from the U.S. to Europe are in turmoil," Kamran Khan said.

The Pakistan Stock Exchange (PSX) witnessed its worst-ever single-day fall, prompting a one-hour trading halt. The index plummeted as much as 7,498 points at one stage.

European markets opened sharply lower, with the U.K., France, Germany and Switzerland all seeing declines of up to 5 percent. In Asia, markets in Hong Kong, Japan, China and Taiwan suffered even steeper losses, dropping between 8 and 12 percent.

Kamran Khan said that the market capitalization of major global companies had been “shattered,” accelerating fears of a deep and prolonged recession.

He pointed to an alarming projection by JPMorgan, which now sees a 60 percent chance of a U.S. recession. The firm warned that new tariffs could increase the average American consumer’s tax burden by 24 percent.

Protests erupted across major U.S. cities including Washington, D.C., New York, Florida, California, Los Angeles and Texas. Demonstrations also spread to key European cities such as London, Paris and Berlin.

“Not just the U.S., but the whole world is entering not just a recession, but a race to the bottom,” Kamran Khan said, quoting U.S. News & World Report former editor Joseph Williams.

Media reports suggest that countries including Pakistan, Japan, Taiwan, Israel, India and Vietnam are attempting to negotiate tariff relief with Washington.

Pakistan, facing a 29 percent tariff, could see its vital textile sector hit hard. However, Finance Minister Muhammad Aurangzeb said Islamabad is preparing to initiate dialogue with Washington.

“We will search for opportunity amid this crisis,” Aurangzeb said.

Kamran Khan noted that despite global unrest and economic backlash, President Trump remains unwavering in his trade stance.

“This is not just an American issue anymore,” he said. “It’s a global economic emergency in the making.”