Stocks Tumble as Trump Imposes New Tariffs

The stock market took a hit as President Trump announced new tariffs. This move has increased fears of a global trade war, which could slow down the already struggling U. S. economy. The Dow Jones Industrial Average, S&P 500, and Nasdaq-100 all saw significant drops in their futures. Multinational companies, especially those that sell a lot of imported goods, were hit the hardest. Shares of Nike and Apple dropped by 7% and 6%, respectively. Five Below and Gap also saw significant losses, with drops of 11% and 12%. Tech stocks were not spared, with Nvidia and Tesla seeing declines of 4% and 5%. The White House announced a base tariff rate of 10% on all countries, starting April 5. However, countries that impose higher tariffs on the U. S. will face even steeper duties. Trump explained that these new tariffs would be roughly half of what other countries charge the U. S. This includes not just tariffs, but also other barriers and forms of unfair trade practices. For example, China's effective tariff rate could now be as high as 54%, which is much higher than traders had anticipated. This unexpected increase has left many traders worried and uncertain about the future. The S&P 500 had been on a three-day rise, fueled by hopes that Trump would not impose severe tariffs. However, the new tariffs have dashed these hopes and sent the market into a downward spiral. The benchmark has been struggling since late February, falling into correction territory due to the ongoing uncertainty caused by Trump's tariff announcements. This uncertainty has started to affect economic data, further pressuring stocks and raising fears of a recession. Some experts believe that if Trump had announced a 10% tariff, the market would have reacted positively. However, the higher-than-expected tariffs have created more volatility and uncertainty. The new tariffs have added a layer of complexity to an already complicated situation. The administration's approach has been criticized for being disorganized and unpredictable, making it difficult for traders to price in the new tariffs. The market is now braced for more volatility as it tries to absorb the impact of these new tariffs. The S&P 500 is on track to fall back into correction territory during regular trading hours on Thursday, extrapolating from the losses seen in after-hours trading on Wednesday.