Wall Street triggered a global market downturn on Thursday due to President Donald Trump’s new tariffs.
The S&P 500 fell 4.8%, its largest decline since 2020, while the Nasdaq dropped 6.0% and the Dow Jones lost 4.0%. Trump’s trade war caused global uncertainty, yet he dismissed concerns, promising a “booming” U.S. economy.
Wall Street shuddered and a level of shock unseen since Covid’s outbreak tore through financial markets worldwide on Thursday over worries about the damage President Donald Trump’s newest set of tariffs could do to economieshttps://t.co/U3S1XUcFyb
— PA Media (@PA) April 3, 2025
Announced Wednesday, the tariffs hit hard: 10% on all imports, 25% on foreign cars, and steeper rates on nations like China (54%) and the EU (20%). Canada fired back with matching levies, and Stellantis paused plants in Canada and Mexico. Trump, heading to Florida, shrugged off the turmoil. “It’s an operation the economy will soar,” he told reporters.
Global Pushback and Economic Fears
Foreign leaders scrambled. China demanded the tariffs’ end, vowing retaliation, while France and Germany eyed U.S. tech firms as targets. The EU’s Maros Sefcovic planned talks with U.S. officials Friday, and Italy’s Giorgia Meloni urged dialogue. IMF chief Kristalina Georgieva warned of a “significant risk” to global growth, urging cooperation.
BLOODBATH: It gets WORSE. U.S. stocks continue to plummet after Trump unveils sweeping tariffs. Futures tied to the Nasdaq-100 lost 4.7%. The S&P 500 futures dropped 3.9% and Dow Jones lost 2.7%.
This is a nightmare. pic.twitter.com/0eAif15zlO
— CALL TO ACTIVISM (@CalltoActivism) April 2, 2025
At home, Trump faced dissent. Senator Mitch McConnell called tariffs “bad policy,” favouring alliances over conflict. But Commerce Secretary Howard Lutnick doubled down on CNN: “Trust Trump; he’s the global economic sumo wrestler.” Gold hit a record high, oil dipped, and the dollar weakened amid the chaos.
Read: Trump Sets 29% Tariff on Pakistani Goods
Trump targeted “nations that treat us badly,” like China and Japan (24%). Britain faces 10% duties starting Saturday, and higher rates kick in on April 9. He hinted at negotiation but called toughness via spokeswoman Karoline Leavitt: “This isn’t a discussion.” As markets bleed, the world watches.