Tariffs News Highlights: Tariffs Send Wall Street Tumbling to Worst Day Since Pandemic

The S&P 500 fell almost 5 percent on Thursday, its worst drop since June 2020, as allies and adversaries alike criticized President Trump’s action and weighed their responses.

Tariffs News Highlights: Tariffs Send Wall Street Tumbling to Worst Day Since Pandemic

New York, NY — Wall Street suffered its worst trading day since the COVID-19 market crash Thursday after the Trump administration unveiled aggressive new tariffs that sent shockwaves through the global economy. The S&P 500 plummeted 4.9%, its steepest single-day drop since June 2020, as investors grappled with the prospect of reignited trade wars and higher consumer prices.

Market Carnage Spreads Globally

• $1.7 trillion wiped from U.S. equities in a historic selloff
• Apple led tech stocks down with a 9% collapse—its worst day since 2019’s China warning
• European markets fell 3-5% as Germany’s DAX hit 16-month lows
• Asian bourses opened sharply lower, with Japan’s Nikkei sinking 3.2%

The Tariff Bombshell

President Trump’s long-teased “reciprocal tariffs” exceeded expectations with:

• 34% on Chinese goods (layered atop existing duties)
• 20% on EU imports
• 24-26% on Japanese and Indian products
• Even remote Antarctic territories (Heard & McDonald Islands) hit with duties

Global Backlash Erupts

China: Vowed “necessary countermeasures,” state media called it “self-defeating bullying”
EU: Commission President von der Leyen warned “if you take on one of us, you take on all”
France: Macron urged European firms to freeze U.S. investments pending clarity
Japan: PM Ishiba called tariffs “regrettable” but avoided retaliation threats

Economic Domino Effects

• Consumer goods (Nike, Walmart) tanked on Asian supply chain fears
• Auto stocks reeled as 100% tariffs took effect at midnight on foreign-made vehicles
• E-commerce giants faced new costs as Trump closed de minimis loophole for Chinese imports

White House vs. Wall Street

While markets panicked, Trump remained defiant:
“The markets are going to boom. The country is going to boom.”
But economists warned of:

• Immediate price spikes for consumers
• Potential job cuts if tariffs persist
• Q3 GDP forecasts being revised downward

What Comes Next?

• Friday’s jobs report may show early labor market impacts
• Fed watch: Traders now pricing in 70% chance of emergency rate cut by July
• Corporate fallout: Multinationals expected to issue profit warnings

Historical Context:
The selloff:

• Erased S&P 500’s 2024 gains
• Pushed index into correction territory (down 11% from peak)
• Marked worst non-pandemic drop since 2018’s trade war scare

“This isn’t just about stocks—it’s a stress test for the global trading system,” said former Treasury Secretary Larry Summers, who called it “the costliest presidential economic decision in modern history.”

Investor Takeaway: With no immediate off-ramp in sight, markets face extended volatility as the world adjusts to a new era of protectionism—and prepares for potential retaliation.