Stocks got hit with a heavy blow Thursday, falling hard after President Donald Trump announced sweeping new tariffs. This sudden shift cranked up fears of a full-blown global trade war, and Wall Street wasted no time reacting. The market tumbled across the board, pulling the S&P 500 back into correction territory—marking a sharp reversal for investors already on edge.
The Dow plunges over 1,400 points in just one trading day, dropping 3.5% and closing out one of the worst days since September 2022. The S&P 500 lost 4%, and the tech-heavy Nasdaq cratered by 5%. This broad sell-off had decliners outpacing advancers six to one on the New York Stock Exchange. That’s not just a dip—that’s a warning shot.
Trump’s tariff announcement came suddenly on Wednesday, when he declared a flat 10% tariff on all countries starting April 5, with even harsher rates expected for those countries that hit the U.S. with higher taxes. His move set off alarms, especially since the U.S. economy has already been walking on shaky ground.
Trump’s Tariff Shock: “We Will Charge Them Approximately Half”
During a press conference from the White House Rose Garden, Trump didn’t hold back.
“We will charge them approximately half of what they are and have been charging us,” he said. “So, the tariffs will be not a full reciprocal.”
He also clarified that this halved figure includes “the combined rate of all their tariffs, non-monetary barriers and other forms of cheating.”
These tariffs are set to hit hard and fast. While Trump framed them as a strategic move to restore balance in global trade, investors clearly weren’t feeling it. Wall Street interpreted the announcement as a signal for increased tension with key trade partners—and that could mean major headaches for corporate America.
Multinational Giants and Retailers Take a Brutal Hit
It wasn’t just Wall Street’s mood that got ugly—so did the numbers. Major multinational companies saw billions in market value wiped out. Nike got tripped up, falling 12%, while Apple lost 8% in a single day.
Retailers that lean heavy on imported goods also took a major L. Dollar Tree dropped 8%, Gap fell 22%, and Five Below saw its stock sink by a staggering 29%. The message? Tariffs aren’t just political tools—they’re money movers, and right now they’re moving in the wrong direction.
Tech Stocks in Free Fall as Risk Appetite Evaporates
It was another ugly day for Big Tech, a sector already dealing with shaky confidence. Nvidia, which had been riding high off AI hype, dropped 6%, and Tesla matched that fall, also losing 6%.
When tech goes cold, it chills the entire market. Investors pulled their money fast, signaling a shift to safety—or just a total exit for now. There’s no appetite for risk when Washington’s starting trade wars.
What Comes Next? Economic Fallout Looms
With the Dow plunging over 1,400 points and investor confidence shaken, questions are swirling about what happens next. These new tariffs could ripple across everything—from grocery store prices to manufacturing jobs. The global supply chain was already fragile, and this kind of move only makes things messier.