March 31, 2025 – Global financial markets experienced significant declines, marking their worst monthly performance since 2022. Investor sentiment has been rattled by President Donald Trump's announcement of broad tariffs affecting all nations, fueling fears of an escalating trade war.

Major indices, including the FTSE 100, DAX, and CAC, saw substantial drops, while the US stock market is projected to follow suit. The US dollar also suffered notable losses. Economic data indicating rising inflation and weakened consumer sentiment have further exacerbated concerns over the health of the US economy. In response to the turmoil, the Bank of England has warned about a potential recession and is considering interest rate cuts.

Meanwhile, gold prices have surged to record highs as investors seek safe-haven assets amid the market volatility.

Discussion Questions:

1. What are the potential global economic impacts of the newly announced tariffs?​
   

2. How might these trade policies affect international relations and alliances?​
   
   

3. What strategies can investors employ to mitigate risks during such market volatility?​
   
   

4. How do rising inflation and weakened consumer sentiment contribute to recession fears?​
   
   

5. What role does gold play as a safe-haven asset during financial instability?​
   
   

6. How might central banks respond to these economic challenges?​
   
   

7. What lessons can be learned from previous trade wars in history?

Global Markets Plunge Amid Rising Trade War Concerns