Trump Tariffs Send US Markets Into Shock, S&P 500 Sheds $2.4 Trillion
The Dow Jones Industrial Average plunged a whopping 1,679 points (or 4 per cent) and the Nasdaq composite tanked by 6 per cent.
US stocks market witnessed its worst one-day sell-off since 2020, as shares ripped through financial markets across the world over worries of an all-out trade war and fears of a global economic recession over US President Donald Trump’s sweeping trade tariffs.
Everything fell, from big tech firm stocks to crude oil to the very value of the US dollar against other currencies. Even gold, which had seen a positive trend amid investors seeking safer in-hand options, saw a sinking range on Thursday, The Associated Press reported.
Smaller US companies were hit the hardest, with the Russell 2000 index of smaller stocks dropping 6.6 per cent to pull more than 20 per cent below its record.
‘Worst Case Scenario For Tariffs’
Even though investors were aware of Trump’s incoming ‘liberation day’ announcement, US president managed to surprise the markets with “the worst case scenario for tariffs”, experts said.
As per UBS, it is “plausible” the tariffs altogether could knock down the US economic growth by 2 percentage point this year. This could raise inflation close to 5 per cent, it added.
‘Markets Going To Boom’
Trump has remained optimistic that his reciprocal tariffs on trading partners will benefit the US economy. And now, with his announcement invoking fears in the market, the President on Thursday downplayed the impact of his sweeping levies.
“The markets are going to boom, the stock is going to boom and the country is going to boom,” Trump said on Thursday as he left the White House to fly to Florida.
Trump’s ‘Liberation Day’ Tariffs: List Of Countries Impacted
The United States on April 2 implemented a new tariff structure under the “Liberation Day” initiative, introducing a universal 10 per cent tariff on all imported goods and additional reciprocal tariffs targeting specific countries based on their trade practices.
Speaking from the White House Rose Garden, Trump called the measure a “declaration of economic independence” and vowed to strengthen domestic production by levelling the playing field with foreign competitors.
The updated tariff structure implements a 10 percent flat rate on all imports while imposing higher rates on key trading partners. Cambodia faces the highest tariff at 49 percent, followed by Vietnam at 46 percent, Sri Lanka at 44 percent, and China at 34 percent. Additionally, Trump introduced a 26 percent “discounted reciprocal tariff” on imports from India.