World
India
The U.S. stock market took a sharp nosedive late Wednesday after former President Donald Trump unveiled a sweeping tariff policy, triggering fears of escalating trade tensions and economic uncertainty.
The announcement, which includes a minimum 10% tariff on all U.S. imports and steeper levies on major trade partners, sent major stock indices tumbling and rattled global investors.
Stock Market Hit Hard
The S&P 500 fell more than 2.5% in after-hours trading, wiping out three days of gains. Nasdaq 100 futures plunged 4.3%, while Dow Jones Industrial Average futures dropped over 1,000 points, or 2.3%. Tech giants and multinational corporations bore the brunt of the sell-off, with Apple, Amazon, and Walmart seeing declines of 6% to 7%. Nike, heavily reliant on overseas manufacturing, plummeted 7% in after-hours trading.
Tariff Details Spark Panic
Trump’s “Liberation Day” tariff plan imposes a blanket 10% tariff on all exports to the U.S. while targeting countries with significant trade surpluses. China faces the highest levy at 34%, followed by the European Union at 20% and Japan at 24%. The drastic measures dashed hopes among investors that Trump’s trade policies would be more moderate.
“This slate of tariffs is worse than the worst-case scenario investors were fearing,” said Dan Ives, an analyst at Wedbush Securities. “The ripple effects will be felt across industries, from retail to automotive to technology.”
The impact of the tariffs is expected to drive up costs for U.S. consumers and businesses. A Goldman Sachs analysis estimated that foreign-made cars could become up to $15,000 more expensive, while even U.S.-assembled vehicles could see price hikes of $8,000 due to higher component costs.
Retailers that rely on imports, such as Five Below and Dollar Tree, saw double-digit losses, while automakers like General Motors and Ford faced moderate declines. Treasury Secretary Scott Bessent downplayed the after-hours market reaction, stating, “I’ve learned not to look at what goes on during after-hours markets.”
