Market uncertainty spikes due to tariffs

President Trump's announcement regarding global tariffs hit markets hard. The stock market in the US plunged, with the S&P 500 Index losing roughly 10% since April 2 (the day of the announcement). US treasuries moved visibly down. However, President Donald Trump and his economic team dismissed investors' fears of inflation and recession. Furthermore, the supposed condition of eliminating the trade deficit of the country with the US in order to have the tariffs lowered may prove to be hard to achieve. The uncertainty level is very high. Today, we look at the VIX Index, which skyrocketed on Friday, reaching as high as 45.3. Such development is comparable to two other major economic shocks, the Great Financial Crisis in 2008 and 2009, and the pandemic, already suggesting market panic.