On March 4, 2025, global financial markets reacted negatively as President Donald Trump's 25% tariffs on imports from Canada, Mexico, and China took effect, escalating trade tensions and fueling investor anxiety.

In the United States, major indices suffered significant losses; the Dow Jones Industrial Average fell by 649.67 points (1.48%), the S&P 500 dropped 104.78 points (1.76%), and the Nasdaq Composite decreased by 497.09 points (2.64%).

Asian markets mirrored this downturn, with Japan's Nikkei and Hong Kong's Hang Seng indices declining by over 2% and 1.5%, respectively.

The tariffs also impacted currency markets; both the Mexican peso and Canadian dollar weakened against the US dollar.

These developments have heightened concerns about a potential global economic slowdown, prompting investors to adopt more defensive strategies in anticipation of prolonged market volatility.