Despite global opposition to his brutal trade policy on tariff hike, President Donald Trump, yesterday, insisted that there was no going back on the sweeping decision, which has seen global trade tumbling in the last few weeks, and likely to plunge the world into another round of recession.
The President said that he won’t back down on his sweeping tariffs on imports from most of the world, unless countries even out their trade with the U.S., digging in on his plans to implement the taxes that have sent financial markets reeling, raised fears of a recession and upended the global trading system.
The impact of the Trump’s statement was evident yesterday on the global financial markets as stocks tumbled in various jurisdictions with equities in Nigerian Exchange Limited also losing N458 billion in market capitalization.
Speaking to reporters aboard Air Force One, Trump said he didn’t want global markets to fall, but also that he wasn’t concerned about the massive sell-off either, adding, “sometimes you have to take medicine to fix something.”
His comments came as global financial markets appeared on track to continue sharp declines once trading resumes Monday, and after Trump’s aides sought to soothe market concerns by saying more than 50 nations had reached out about launching negotiations to lift the tariffs.
“I spoke to a lot of leaders, European, Asian, from all over the world,” Trump said. “They’re dying to make a deal. And I said, we’re not going to have deficits with your country.
We’re not going to do that, because to me a deficit is a loss. We’re going to have surpluses or at worst, going to be breaking even.” The higher rates are set to be collected beginning Wednesday, ushering in a new era of economic uncertainty with no clear end in sight. Treasury Secretary Scott Bessent said unfair trade practices are not “the kind of thing you can negotiate away in days or weeks.”
The United States, he said, must see “what the countries offer and whether it’s believable.” The global financial markets spiraled downward on Monday as investors reacted with mounting alarm to Trump’s aggressive tariff regime, which has sparked retaliatory measures worldwide and stoked fears of a prolonged global trade war.
The NGX suffered its steepest loss in recent months, erasing N458 billion in market capitalisation, despite the strategic listing of nearly six billion additional shares by First HoldCo Plc. The All-Share Index fell 1.23 per cent to close at 104,216.87 points, trimming year-todate gains to a modest 1.25 per cent. Market capitalization dropped by a near-equivalent 1% to N65.49 trillion.
The marginal divergence between the index and market cap decline was attributed to First HoldCo’s newly listed shares—5,982,548,799 ordinary shares at N25.00 each—which, while intended to boost market liquidity, inadvertently diluted overall market valuation and compounded negative sentiment.
U.S. markets bore the brunt of the global rout. The S&P 500 plunged 2.3 per cent, edging into bear market territory after shedding nearly 20 per cent from its February peak. The Dow Jones Industrial Average plummeted 1,015 points, or 2.6 per cent, following backto-back 1,500-point losses in the prior week.
The Nasdaq Composite fell 1.9 per cent, extending its decline to 24 per cent from record highs as tech investors rushed to cash out. European and Asian bourses were equally battered. London’s FTSE 100 opened over five per cent lower, building on Friday’s worst single-day performance in five years.
Germany’s DAX initially nosedived 10 per cent before partially recovering, while Hong Kong’s Hang Seng recorded its fourth-largest one-day loss in history. Back on the NGX, market breadth was overwhelmingly negative, with only 9 stocks advancing versus 51 decliners.
Notable gainers included VFD Group (+10%), TotalEnergies (+9.61%), Guinea Insurance (+9.52%), International Energy Insurance (+9.33%), and Abbey Mortgage Bank (+8.88%). On the flip side, Oando, NSLTECH, Cornerstone Insurance, and RT Briscoe all shed 10%, with Honeywell Flour (-9.98%) not far behind.
All major sectors closed in the red, reflecting widespread risk aversion: Banking stocks fell 5.48 per cent, Insurance tumbled 7.56 per cent, Consumer Goods dipped 0.79 per cent, Oil & Gas dropped 0.65 per cent, Industrial Goods edged down 0.01 per cent, and the Commodities index lost 0.10 per cent. Ironically, trading activity surged amid the turmoil.
Deals executed rose by 37.10 per cent to 15,690; volume climbed 27.51 per cent; and turnover leapt 37.48 per cent to N11.15 billion, with 444.11 million shares exchanging hands. Market analysts attributed the selloff to the intensifying U.S.-led trade conflict, which has introduced fresh volatility and prompted a global risk-off sentiment.
“This trade war is hitting global markets harder than anticipated,” a Lagos based stockbroker told New Telegraph. “Investors are hesitant—most are adopting a wait-and-see approach even here at home.” While First HoldCo’s expanded float signaled institutional confidence in the Nigerian market’s long-term prospects, Monday’s widespread losses underscored the fragility of investor sentiment in the face of mounting global uncertainties.
