Fears of a potential recession stemming from the protectionist economic policies of US President Donald Trump have prompted investors worldwide to sell stocks en masse. On Monday, major stock exchanges in the United States and Europe experienced significant declines, reaching their lowest levels since before the presidential election. Analysts from several prominent investment banks had previously warned of the heightened risk of an economic downturn. In a recent interview with Fox News, Trump himself did not rule out the possibility of a recession. At the New York Stock Exchange, the Dow Jones Industrial Average, which tracks 30 of the largest US companies, fell by 2% by the close of trading on Monday. The broader S&P 500 index dropped by 2.7%, marking its steepest decline since December 18. Compared to its record high on February 19, the S&P index has now lost over four trillion dollars in market value. The Nasdaq index, which is heavily weighted towards technology stocks, was hit hardest, plummeting by 4%--its largest single-day percentage drop since September 2022. European markets also felt the pressure, with indices in London, Paris, and Frankfurt recording losses. The pan-European STOXX 600 index closed down 1.29%. The sell-off continued in Asia on Tuesday morning, with the Japanese Nikkei index and Taiwan's stock market both dropping by 3% to their lowest levels since September. Australia's ASX200 index fell to a seven-month low, while Chinese stock markets were not immune; the main Chinese index fell by 0.5%, and Hong Kong's Hang Seng index decreased by 0.8%. Tesla shares experienced a staggering decline of over 15%, with other major technology firms--including Alphabet, Amazon, Meta, and Nvidia--also seeing their stock prices drop. The CBOE Volatility Index, commonly referred to as the 'fear gauge' of Wall Street, surged by approximately 19%, reaching its highest level since August 5. Investors are increasingly anxious about the potential economic ramifications of Trump's tariff policies against major trading partners such as Canada, Mexico, and China. Analysts pointed to Trump's Fox News interview as a significant trigger for the market's downturn, where he expressed uncertainty over the possibility of a recession, stating that there would be a 'transitional phase' before things would improve. Market experts suggest that the Trump administration appears to accept a falling market as a potential means to achieve its broader objectives. This sentiment has raised concerns on Wall Street, leading to heightened investor unease about the stability of the markets. According to financial strategists, the uncertainty surrounding the impact of Trump's tariffs has cast a shadow over financial markets. With signs of an impending recession in the US, declining consumer confidence, and increasing complexity in trade relations, investors are growing more apprehensive. Market analysts are puzzled by the rationale behind the US tariffs, questioning whether they are intended as temporary measures to enforce concessions or if they represent a permanent shift in US trade policy. Until there is greater clarity, analysts predict ongoing volatility in the markets. In an attempt to mitigate the fallout, members of the US government have been working to reassure investors. Ken Hassett, the head of the National Economic Council, stated that the outlook for the US economy remains fundamentally positive, despite acknowledging forecasts of a potential contraction in economic growth and rising inflation in the first quarter. However, investors have already made their judgments. Once seen as a savior of the markets due to his promises of lower taxes and reduced regulation, Trump's recent actions now signal a potentially grim economic future. Concerns about recession are once again prevalent, as investors speculate whether the tariffs could backfire and trigger an economic downturn instead of fostering prosperity in the US economy.