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Financial markets are tanking. Here’s why it’s best not to panic

By Luke Hartigan, Lecturer in Economics, University of Sydney

Financial markets around the world have been slammed by the Trump adminstration’s sweeping tariffs on its trading partners, and China’s swift retaliation.

Share markets have posted their biggest declines since the COVID pandemic hit in 2020, as fears of US recession surged. Iron ore, copper, oil, gold and the Australian dollar have all tumbled.

On Wall Street, leading indices have fallen around 10% since the tariffs were announced,…

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