Black Monday sent the stock market crashing in 1987, and there are now fears of a similar event as Donald Trump's tariffs cause economic chaos. Regarded as the first contemporary global financial crisis, the unexpected event on October 19 saw worldwide losses reach a staggering £1.3 trillion and raised questions over another Great Depression.

Nearly 40 years later, the US president’s "Liberation Day" tariffs sent the FTSE 100 plummeting by 6% when trading began on Monday, just days after the worst market crisis since the onset of the Covid pandemic. Elsewhere, the future for the S&P 500 dropped by 3.7%, while the Dow Jones Industrial Average was down 2.9%. Despite this, Mr Trump stood by his trade war, saying, "What’s going to happen with the market? I can’t tell you. But I can tell you our country has gotten a lot stronger, and eventually it’ll be a country like no other".

Black Monday was a global stock market crash on October 19, 1987, starting with Asian markets before moving to Europe and the US. The Dow Jones Industrial Average - an index of 30 top companies on the US stock exchanges - tanked by 508 points, or 22.6% - the largest one-day percentage drop in its history.

The index did not begin to recover until November when most major stock markets had lost over 20% of their value.

The FTSE 100 - the UK's best-known stock market index - fell by 296 points, or 14% by midday on Black Monday, and continued collapsing until mid-November. Unlike in the US, the British stock market did not begin to recover until 1989.

This sparked fears of an extended period of economic stability and even another Great Depression, prompting the New York Stock Exchange (NYSE) to enforce trading curbs known as circuit breakers to help prevent similar crashes in the future.

The severe crash was largely unexpected and was caused by various factors coming together to deliver the biggest one-day percentage decline in US stock market history.

A strong bull market - when stock prices rose, and optimism was high - lasted for five years and peaked just two months before Black Monday, but this created fears that stocks were overvalued and their prices needed correcting to align better.

The US was also experiencing a time of trade and budget deficits and rising interest rates, causing the dollar to decline and little faith in the Government to stop this.

Computerised trading was also still a new concept, and the machines would tell more people to buy when prices were rising and sell when prices fell, prompting a flood of investors to sell in a panic.

Global stock markets have tanked since Mr Trump announced his "Liberation Day" tariffs last Wednesday, sending the FTSE 100 spiralling to its worst day since March 2020 - the onset of the Covid pandemic.

In the wake of the US president’s latest levies, which were set at a baseline of 10%, experts have warned that a second Black Monday could be on the cards.

Jim Cramer, host of Mad Money on CNBC and former hedge fund manager, cautioned: "If the President doesn't reach out and try to reward these countries and companies that play by the rules, then the 1987 scenario - the one where we went down three days and then 22% on Monday - has the most cogency. We will not have to wait out too long will we? We'll know by Monday."

He added on X: "If President Trump does nothing and if Europe retaliates, then the odds jump for an October 87 replay."

US Federal Reserve chair Jerome Powell explained that the tariffs could spark higher unemployment and inflation. He warned: "We face a highly uncertain outlook."