Reported by Tom Westbrook and Dhara Ranasinghe, the discomfort Shuntaro Takeuchi felt was excruciating, ranking at 10 out of 10. However, it wasn't related to the Japanese stock portfolio he managed in Palo Alto, California, but instead, it was his appendix causing him trouble. Despite needing immediate surgery, Takeuchi was still on a conference call with his colleagues at Matthews Asia, a $7 billion asset management firm, to navigate through the ongoing market turmoil.

During this period, global stock markets were experiencing a significant downturn, with the Nikkei in Tokyo plummeting by 4% and billions of dollars being wiped out across equities worldwide. The aftermath of U.S. President Donald Trump imposing tariffs on automakers led to extreme volatility in various assets like stocks, bonds, oil, gold, and even the U.S. dollar itself. This market turmoil was particularly evident in the heavy selling of U.S. Treasuries, which are considered a key safe asset in global financial markets, indicating instability in global trade and finance.

Trump's aggressive tariff policy, described as "Liberation Day," sparked an economic conflict primarily with China, resulting in a trade embargo with escalating tariffs soaring to 145%. This trade war and unpredictable policy decisions have caused around $5 trillion in losses in the MSCI all-country index of global stocks. The market shock revealed a lack of preparedness among investors for the impact of the tariffs, raising concerns about potential negative consequences for the U.S. financial landscape.

Veteran fund manager Geoff Wilson expressed worries about the dwindling confidence in the market and the uncertainty surrounding the implications of the ongoing market decline. The situation highlighted the risks associated with Trump's tariffs and the potential negative effects on the United States' global financial position, emphasizing the need for caution and preparedness in navigating through the current economic turbulence.