U.S. stocks drop after hours as Trump imposes sweeping tariffs, S&P 500 ETF falls 2%: Live updates

U.S. stock futures cratered as President Donald Trump unveiled sweeping tariffs of at least 10% and even higher for some countries, raising the risks of a global trade war that hits the already sputtering U.S. economy.

Futures tied to the Dow Jones Industrial Average lost 1,069 points, or 2.5%. S&P 500 futures dropped 3.6%. Nasdaq-100 futures lost 4.5%.

Shares of multinational companies tumbled in extended trading. Nike and Apple each dropped about 7%. Shares of big sellers of imported goods were among the hardest hit. Five Below lost 14%, Dollar Tree tumbled 11% and Gap plunged 8.5%. Tech shares dropped in an overall risk-off mood, with Nvidia off 5% and Tesla down 7%.

The White House unveiled a baseline tariff rate of 10% on all countries that goes into effect April 5. Even bigger duties against countries that levy higher rates on the U.S. will be charged in coming days, according to the administration.

“We will charge them approximately half of what they are and have been charging us,” said Trump in a press conference from the White House Rose Garden. “So, the tariffs will be not a full reciprocal.”

That halved figure includes “the combined rate of all their tariffs, non-monetary barriers and other forms of cheating,” he said.

What’s likely spooking traders is that these rates will end up being much higher than expected for many nations. For example, the effective tariff rate for China will now be 54% when accounting for the new reciprocal rate and duties already levied against the country, the White House clarified to CNBC. Traders had hoped a 10%-to-20% rate would be a universally applied cap, not a minimum starting point.

“What was delivered was as haphazard as anything this administration has done to date, and the level of complication on top of the ultimate level of new tariffs is worse than had been feared and not yet priced into the market,” said Art Hogan, chief market strategist at B. Riley Wealth Management.

The S&P 500 rose for a third day Wednesday on hopes Trump would not announce a severe tariff plan on the risk it would tip the economy into a slowdown and raise already sticky inflation.

The benchmark has been hit hard since late February with it falling into correction territory — or 10% down from its record — because of the heightened uncertainty caused by Trump’s ongoing tariff announcements. This uncertainty has started to show up in some sluggish economic data, which further pressured stocks by heightening recession fears.

“If he would have come in with just the 10%, I think the markets would probably be up quite a bit right now,” said Larry Tentarelli, chief technical strategist at the Blue Chip Trend Report. “But because the tariffs came in bigger than many expected, I think what that does is it creates more downside volatility right now.”

Extrapolating the losses in after hours Wednesday trading, the S&P 500 is on course to fall back into a correction during regular hours trading Thursday.

President Trump’s ‘haphazard’ tariff delivery has shaken markets, says chief market strategist

The market’s after-hours decline can be attributed to a divergence between what investors were expecting versus President Donald Trump’s tariff policy announcement earlier this afternoon, according to Art Hogan, chief market strategist at B. Riley Wealth Management.

“I think that the market had a modicum of belief that we would have an announcement on tariff and trade that was universally applied and less worse than feared. And I think that was what manifested in markets over the course of the last couple of days,” Hogan told CNBC in an interview.

But instead, it seems like the markets weren’t expecting for President Donald Trump to not only issue a blanket 10% tariff, but additional higher duties for select nations.

“What was delivered was as haphazard as anything this administration has done to date, and the level of complication on top of the ultimate level of new tariffs is worse than had been feared and not yet priced into the market,” Hogan added. “That’s exactly where I think we are right now.”

— Lisa Kailai Han

New tariffs could push S&P 500 into correction territory, CFRA’s Sam Stovall says

President Donald Trump’s sweeping tariffs could push the S&P 500 back into a correction with a decline of at least 10% from its February record high, according to Sam Stovall, chief investment strategist at CFRA Research.

“I think it’ll probably push the markets lower,” Stovall told CNBC in an interview. “They will continue lower tomorrow and certainly retest the 10.1% sell-off threshold, and probably push us into a bit deeper of a correction. People were hoping for clarity and it added to opaqueness.”

“The market was not expecting it to be as harsh as it is, and as a result, Wall Street was not appreciative of what they heard,” he also said. “I think that Wall Street is basically saying that we’re not really sure what kind of retaliatory tariffs will come from our major trading partners, but what they are concerned about is that it will lead to higher inflation and lower EPS growth, if not just increased volatility.”

As of Wednesday’s close, the S&P 500 sits nearly 8% below its recent high. While the index is more than 1% higher this week, it’s fallen almost 5% in the past month.

— Sean Conlon

International ETFs including India fall after Trump tariff announcement

India stocks, as well Japan and China stocks, fell in extended trading following President Trump’s new tariffs announcement.

The iShares MSCI India ETF (INDA) dropped around 2.8%, while the iShares MSCI Japan ETF (EWJ) declined 3.2%. The iShares MSCI China ETF (MCHI) was also down about 2.4%.

The moves lower come as Trump announced reciprocal tariffs of 26% on India, as well as 24% and 34% reciprocal tariffs on Japan and China, respectively.

— Sean Conlon

Vietnam ETFs hit hard in postmarket trading after U.S. imposes 46% tariff

The two exchange-traded funds that track the performance of Vietnamese stocks tumbled in after-hours trading in reaction to the Trump administration imposing 46% tariffs on all goods imported from the Southeast Asian nation.

The $420 million VanEck Vietnam ETF dropped 3.2% in late trading while the $11 million Global X MSCI Vietnam ETF tumbled 6.5%.

— Scott Schnipper

International equity outperformance will come under pressure from tariffs

International markets have outperformed U.S. equities in 2025 as investors anticipated U.S. policies would result in slower economic growth. However, President Trump’s retaliatory tariffs are a headwind on this trend, according to Scott Helfstein, head of investment strategy at Global X.

“Hope for a softer tariff policy has turned out to be misplaced. The new tariffs could take some steam out of international trade. Tariff announcements are not good news for trading partners, and the administration is likely to leave these in place for some time,” said Helfstein. “Expect market volatility to persist in the coming months as tariff data works into economic data.”

Domestic companies and industries are not immune from tariffs either, Helfstein noted, with consumer and business sentiment already showing signs of weakening.

Nonetheless, “The tariff news does not alter the long-term secular trends that will continue to drive the U.S. forward,” Helfstein added.

“Further gains in areas like AI, automation and infrastructure will help drive corporate growth and profitability, but realization of some benefits may take a little longer. So, there is still opportunity to embrace secular growth trends,” said Helfstein.

— Hakyung Kim

RH, G-III, Penske Automotive plunge 23% or more in after-hours trading

RH, G-III Apparel Group and Penske Automotive Group tumbled between 23% and 25% in after-hours trading following President Trump’s imposition of larger-than-expected tariffs on imports of foreign-made goods into the U.S.

During the president’s Rose Garden announcement, RH, formerly Restoration Hardware, released fiscal fourth-quarter earnings and revenue that fell short of Wall Street analysts’ estimates, as well as weaker-than-estimated fiscal first quarter and full-year revenue growth guidance.

Other companies that import a large number of products from overseas as part of their business model also slumped in late trading: Five Below and Gap Inc. tumbled 11% each; Deckers Outdoor dropped 10%; Lululemon Athletica, Urban Outfitters, Skechers, Shoe Carnival and Crocs slid 9%; and Williams-Sonoma and VF Corporation fell 8%.

— Scott Schnipper

Trump says dozens of countries could face levies much higher than 10%

President Trump held up a sign showing the rates countries will pay. Although there is a base tariff rate of 10%, the chart showed countries with larger trade imbalances could pay much more. For example, China will face a 34% rate, the European Union will be charged 20% and Vietnam will pay 46% under the reciprocal plan. A sample of the rates is in the chart above.

But some countries will face even higher rates when taking into account duties already implemented. For example, the effective rate on China goods will be more than 50%.

— Christina Cheddar Berk

Nasdaq 100 laggards include Monster Beverage and Apple

Only six stocks in the tech-heavy Nasdaq 100 index were in the green in extended trading after Trump’s tariff announcements: Intuit, Paccar, Workday, CoStar, PepsiCo and MercadoLibre.

Leading the losses were Monster Beverage, Apple, AppLovin and Palantir, which all fell at least 5% in after-hours trading.

— Yun Li, Gina Francolla

Apple tumbles nearly 5% in Wednesday’s extended trading hours

Shares of iPhone maker Apple slipped nearly 5% in Wednesday’s after-hours trading.

The moves came after President Donald Trump announced a blanket tariff of at least 10% for all foreign goods. Select other nations, such as China, Vietnam and India, were hit with a higher levy.

Apple is a company especially sensitive to these tariffs, since the company sells many of its products in international markets. Apple stock has been hit in recent quarters as the company has continued to experience market share losses in countries such as China to domestic competitors.

— Lisa Kailai Han

Nike drops 6% as multination stocks sell off following tariff announcement

Multinational consumer stocks were sliding in after-hours trading following Trump’s tariff announcement.

These companies all have significant sales outside of the U.S.

— Jesse Pound

Major U.S. indexes decline after Trump imposes tariffs

Shortly after 4:45 p.m. ET, the SPDR S&P 500 ETF Trust (SPY), which tracks the S&P 500, traded about 2.2% lower. The Invesco QQQ ETF, which corresponds to the Nasdaq-100 Index, lost roughly 3.2%. The SPDR Dow Jones Industrial Average ETF Trust (DIA) shed nearly 1%.

— Pia Singh