Are we all going to get poorer? Donald Trump is pushing ahead with his tariffs even as stocks around the world plunge. Some are hoping there might be a master plan behind it.
Stock markets tumble as tariffs bite
Down down down: Traders on the New York Stock Exchange reacted with shock and horror as foreign countries debated counter-tariffs and share prices plummeted. Glossary
Tariff - A form of tax on imports.
Stock markets - Also called a stock exchange, where investors buy and sell shares in a company, hoping to make money as the company grows. There are major stock exchanges in London, New York, Hong Kong, and Tokyo.
Manufacturing - When you make things on a large scale, such as in factories.
Trade surplus - A situation in which a country sells or exports more to other countries than it purchases or imports from them. It also signifies a country’s economic potential.
Trade deficits - When a country imports more goods and services than it exports — either completely or from a specific country.
Recession - A period of economic decline. A recession occurs when a country’s Gross Domestic Product falls for six months in a row.
Nixon Shock - Economic actions taken by President Richard Nixon in 1971 that eventually led to the collapse of the Bretton Woods economic system.