Donald Trump, the US President, has shaken the world with his new tariff plans. Tariffs are taxes on goods coming into a country, and Trump wants to put big ones on imports from places like China, India, and Europe. Markets are crashing, and people are talking about a “Black Monday” like in 1987, when stocks fell badly in one day. Why is this happening? Let me break it down into five simple points so everyone can understand why fear is spreading.
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1. Tariffs Are Making Things Costly
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Trump’s tariffs mean goods from other countries will cost more in the US. For example, if India sends clothes or steel, the US will add extra tax. This makes prices go up for Americans. When things get expensive, people buy less. Businesses suffer, and their stock prices fall. This is already happening—US markets lost $5 trillion in just two days! Higher prices can also push inflation, which scares investors even more.
 
2. Other Countries Are Fighting Back
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When Trump puts tariffs on countries like China, they don’t sit quietly. China said it will put 34% tariffs on US goods. India might do something similar. This tit-for-tat is like a trade war. In 1987, global uncertainty helped cause the crash. Today, this back-and-forth is making markets nervous again. No one knows how bad it will get, and that fear is causing panic selling.
3. Global Markets Are Connected
The world is not like it was 50 years ago. Today, if the US market falls, India, Japan, and Europe feel it too. On Friday, the US Dow Jones dropped 2,231 points. On Monday, India’s Sensex fell 3,100 points! In 1987, a big crash in the US spread fast. Now, with Trump’s tariffs hitting everyone, markets everywhere are tumbling together. It’s like a chain reaction no one can stop.
4. Investors Are Losing Confidence
People who put money in stocks want to feel safe. But Trump’s sudden tariff moves are making them worried. Experts like Jim Cramer say this could be as bad as 1987, when the Dow fell 22.6% in one day. Back then, panic selling and uncertainty crashed the market. Today, investors see tariffs hurting trade and growth, so they’re pulling out money fast. When confidence goes, markets fall hard.
5. No One Knows What Trump Will Do Next
Trump says tariffs are “medicine” and countries will make deals with him. But he’s not backing down, even as markets bleed. In 1987, unclear signals and surprises made things worse. Now, Trump’s tough talk—like no talks unless countries “pay”—is keeping everyone guessing. Will he stop? Will he push more tariffs? This confusion is making the fear bigger, just like in 1987.
Final Thoughts
Trump’s tariffs are shaking the world because they’re raising costs, starting trade wars, hitting connected markets, breaking trust, and keeping us in the dark. Black Monday in 1987 was a shock, and people worry Monday, April 7, 2025, could be another. India and the world need to watch closely. Trade keeps us growing, but these tariffs could pull us back. Let’s hope leaders find a way out before it’s too late.