Stock Markets Sink Globally on News of Trump Tariff Plan
The lower Manhattan skyline
Stock markets in the United States plummeted on Thursday in response to President Trump’s escalating trade war. The president on Wednesday imposed a 10% tariff on nearly all foreign imports, higher reciprocal tariffs on some 60 countries, and a 25% tariff on all foreign cars and auto parts.
The Dow Jones Industrial Average was down 1,276 points, or 3%, as of 1 p.m., while the Nikkei 225, Japan’s main stock index, and Europe’s Stoxx 600 each closed 2.7% lower.
The markets are showing signs of profound pessimism about the policies of a president who was elected to office for a second time on the promise of immediate improvements to what was then a flawed but sturdy economy.
President Trump defended the move saying : “The tariffs will boost American industries and jobs to manufacturing in the United States.”
The announcement of the tariffs shattered markets Thursday, as investors dealt an emphatic rebuke of his effort to reorder global trade.
As of noon Eastern Daylight Time, trillions of dollars had been wiped out as the S&P 500 tumbled more than 3.7%. Indeed, the broad-based stock index is on track for its worst day since 2022, and the tech-heavy Nasdaq plunged 4.8%.
(Photo: Accura Media Group)
