Last week, US President Trump declared it America’s “Liberation Day” as he unveiled a new 10% “baseline” tariff on all goods imported into the United States, alongside even higher rates for countries he accused of “unfair trade practices.” The EU, China, and Japan are among those facing the steepest hikes — 54%, 20%, and 24% respectively — but the UK hasn’t escaped unscathed, hit with the standard 10% tariff. The announcement continues to send shockwaves through the global financial markets; markets hate uncertainty — and right now, uncertainty is the only constant. The UK’s FTSE 100 fell by around 5% on Monday morning (April 7), wiping out a year’s worth of gains. Hours earlier, Germany’s DAX and France’s CAC 40 were down 6.5% and 5.3% respectively, while Asian markets plunged overnight. As global financial markets teeter on the edge and the sun slowly rises over America, Wall Street is bracing for a meltdown of its own later today. There’s even talk of a repeat of 1987’s infamous ‘Black Monday’. But this time, it’s being fuelled not by runaway computers or oil price shocks, but by the country’s own commander-in-chief. But what was Black Monday — and how likely is a sequel? Here is everything you need to know about it. Read more: Trump tariffs - new US reciprocal trade tariffs on UK imports explained Black Monday refers to October 19, 1987, when the Dow Jones Industrial Average plummeted by 22.6% in a single trading session — the biggest one-day drop in Wall Street history. The causes were complex, and included concerns about overvalued stocks, rising interest rates, inflation, and the growing US trade deficit. Investors were already nervous when new computerised trading systems - programmed to sell when prices fell - responded to a market dip, triggering wave after wave of selling, creating a snowball effect. A personalised morning news round-up with NationalWorld Today - sign up here. While the crash didn’t spark a long-term recession, it shook confidence in the global financial system and prompted reforms in trading regulations and market safeguards that are still in place today. Today, there are similarities. Financial markets are volatile, global economies are fragile after recent geopolitical tensions and inflationary pressures, and now a major new threat has emerged in the form of Trump's tariff war. CNBC host and market analyst Jim Cramer — known for his often dramatic takes — warned over the weekend that Trump’s tariffs could lead to a repeat of the 1987 market crash. “If the president doesn’t try to reach out and reward countries and companies that play by the rules,” he said, “then the 1987 scenario has the most cogency.” While that may sound alarmist, it’s not without basis. Investor sentiment is fragile, and history shows that panic can quickly snowball. If traders start dumping stocks out of fear, markets could nosedive before any diplomatic resolution is even possible. As the tariffs take effect on Wednesday (9 April), the mood may turn even gloomier. Whether or not this week earns the title ‘Black Monday 2’ remains to be seen, but what’s clear is that we’re entering uncharted territory in global trade. Trump, who spent the weekend in Florida playing golf, posted online: “WE WILL WIN. HANG TOUGH, it won’t be easy.” His Cabinet members and economic advisers were out in force on Sunday, defending the tariffs and downplaying the consequences for the global economy. “There doesn’t have to be a recession. Who knows how the market is going to react in a day, in a week?” Treasury Secretary Scott Bessent said. “What we are looking at is building the long-term economic fundamentals for prosperity.” With all of the talk around the global markets and Wall Street, traders and investors get a lot of mention. But what does the news of a potential crash mean for the average, British consumer? For now, most won’t see an immediate impact, but if you have a pension, stocks and shares ISA, or savings invested in the markets, you're likely to be affected by falling share prices — even if you don’t check them every day. If your pension pot is invested in company shares or global markets, its value may temporarily shrink. Similarly, stocks and shares ISAs that include investments in these areas could also see a dip. If you own shares in a company — whether through an employee scheme or personal investment — those shares may fall in value, especially if the company does a lot of business with the US If you’re close to retirement, rely on income from investments, or work in a trade-heavy sector, this news could be more concerning. But for most people, it’s more about keeping an eye on the big picture. Markets rise and fall all the time, but if these tariffs trigger a longer-term downturn or even a recession, it could slow the growth of your savings or retirement fund. Are you struggling to make ends meet as costs continue to rise? You can now send your stories to us online via YourWorld at yourworld.net/submit. It's free to use and, once checked, your story will appear on our website and, space allowing, in our newspapers.