Global financial markets are in turmoil on Thursday as President Donald Trump unleashes a new and harsh round of tariffs, sending U.S. stocks tumbling to new lows.
The S&P 500 saw a sharp decline of 4% during morning trading, leading the downturn among major global markets. The Dow Jones Industrial Average plummeted by 1,520 points, or 3.6%, and the Nasdaq composite also decreased by 5%.
Assets across various categories saw declines—with everything from crude oil and major tech stocks to the U.S. dollar dropping in value against other currencies. Even gold, typically considered a safe haven and which had recently seen record highs, fell due to profit-taking.
While investors were aware of the impending announcement of comprehensive tariffs by Trump scheduled for late Wednesday, the extent of the measures caught many off guard. The fear of such developments had already driven the S&P 500 down 10% from its peak last month, but the depth and severity of the announcement sent a wave of shock through the markets.
President Donald Trump introduced a sweeping policy of global reciprocal tariffs during a White House event. He established a baseline 10% tariff on all imported goods, with certain nations facing even higher rates.
At the official announcement held in the Rose Garden, he showcased a board displaying the new tariffs imposed on various nations. These tariffs varied significantly, ranging from 10% to as high as 50%.
China was slapped with 34% tariffs on top of existing 20% levies. The European Union was hit with 20%, while Vietnam, who is the producer of various types of products for Americans, got hit with 46%.
