U.S. markets were mixed following President Donald Trump’s announcement of sweeping tariffs, set to take effect on April 5, 2025. The policy, which imposed a baseline rate of 10% on imports from all countries, has ignited fears of a global trade war that could further strain an already fragile U.S. economy.
The announcement sent shockwaves through financial markets, with futures on major U.S market indices like the Dow Jones, S&P 500, and Nasdaq-100 experiencing sharp declines of 1.95%, 2.68%, and 3.19%, respectively. These losses reflect heightened investor anxiety about the implications of escalating trade tensions.
The impact of the tariff announcement was particularly severe for certain sectors. Multinational corporations, such as Nike and Apple, suffered significant losses, with shares of both companies falling by 7% in extended trading.
Retail stocks, heavily reliant on imported goods for the U.S markets, faced even steeper declines. For instance, Dollar Tree and Gap saw their shares tumble 11% and 8.5%, respectively, as the looming tariffs threaten to raise costs and shrink profit margins.
The tech sector on U.S. markets was not spared, with major players like Nvidia and Tesla also experiencing losses of 5% and 7%, respectively, as a broader risk-off sentiment took hold.
This policy shift has also raised significant economic concerns across U.S Markets. With the S&P 500 already in correction territory—down over 10% from its recent highs—the announcement has added to existing fears of a potential slowdown in economic growth. Analysts warn that the tariffs could exacerbate inflationary pressures by increasing the cost of imported goods, further straining consumers and businesses alike. The heightened uncertainty has led to revisions in economic growth forecasts, with some experts cautioning about the possibility of stagflation.
U.S. markets displayed mixed performances.
The S&P 500 and Nasdaq managed modest gains of 0.38% and 0.87%, closing at 5,633.07 and 17,449.89, respectively. However, the Dow Jones Industrial Average dipped slightly by 0.03%, ending the day at 41,989.96. These movements highlight the resilience of certain sectors amidst the growing uncertainty but also underline the market’s overall cautious stance.
Investors and analysts are now closely monitoring the situation on U.S Markets, awaiting further developments and policy clarifications. The coming weeks will be critical in determining the long-term implications of these tariffs on the global economy and financial markets.
Read: Asian Markets Down Despite Trump’s Offer on Tariff Breaks
