2025 stock market crash

Starting on April 2, 2025, global stock markets crashed amid increased volatility following the introduction of new tariff policies by U.S. president Donald Trump during his second term. On April 2, which he called "Liberation Day", Trump announced sweeping tariffs impacting nearly all sectors of the US economy. The announcement triggered widespread panic selling across global stock markets. It became the largest global market decline since the 2020 stock market crash, which occurred during the recession caused by the COVID-19 pandemic. Trump entered his second term with a particularly strong domestic stock market. This momentum continued for several weeks after his inauguration. However, the administration soon began implementing increasingly aggressive trade policies aimed at advancing protectionism and applying economic pressure. These included escalating the ongoing trade war with China, starting a trade war with Canada and Mexico, imposing heavy tariffs, and heightening tensions with key allies.