Investors Panic as U.S. Stock Market Plummets Over Trump’s Tariff Plan
The stock market took a severe hit as investors reacted sharply to President Donald Trump’s newly announced tariff plan. Global markets plunged, with U.S. stocks suffering significant losses. Investors were caught off guard as they had anticipated a less aggressive approach, but Trump’s tariffs turned out to be far more expansive than expected.
The market's response was swift and dramatic. S&P 500 futures tumbled by 3.5%, Nasdaq 100 futures fell by more than 4.3%, and Dow futures slid nearly 1,000 points, equating to a 2.3% drop. This downturn follows an already challenging quarter for the stock market, with investors growing increasingly concerned about the economic implications of these protectionist measures.
Also Read:- GST Collections Surge 9.9% to Rs 1.96 Lakh Crore in March 2025
- Milan and Inter Draw in Intense Coppa Italia Semi-Final First Leg
Trump's announcement included a blanket 10% tariff on all trading partners, along with reciprocal tariffs that could exceed 20% for some countries. This aggressive stance has rattled Wall Street. Dan Ives, an analyst at Wedbush Securities, described it as “worse than the worst-case scenario” that investors had feared. The impact is being felt across industries, especially among companies heavily reliant on global supply chains.
Tech giants and major retailers were hit particularly hard. Apple shares plunged by nearly 7%, while Amazon and Walmart dropped by 6% and 5%, respectively. Nike, which manufactures a significant portion of its products in Vietnam, suffered a steep 7% decline in after-hours trading. Retail chains that depend on imported goods also faced heavy losses, with Five Below plummeting 13.5% and Dollar Tree falling over 11%.
Despite the turmoil, Treasury Secretary Scott Bessent appeared unfazed. In an interview with Bloomberg Television, he dismissed the panic in after-hours trading, stating, “I’ve learned not to look at what goes on during after-hours markets.” He also suggested that the tech sector’s struggles were due to the so-called “magnificent 7” stocks rather than the broader economic policy.
The auto industry is also bracing for impact. While General Motors and Ford saw minimal declines of less than 1%, Stellantis, the owner of Jeep, dropped nearly 2%, largely due to its heavier manufacturing presence in Europe. According to a Goldman Sachs estimate, these tariffs could raise the price of a foreign-made car by as much as $15,000. Even vehicles assembled in the U.S. might see price increases of up to $8,000.
As uncertainty looms over the stock market, investors are scrambling to reassess their positions. The long-term effects of Trump’s tariff policy remain to be seen, but for now, the market is sounding a loud and clear alarm.
Read More:
0 Comments