U.S. stock markets tumbled on Friday, set to extend a staggering $2.5 trillion market loss, as escalating trade-war tensions with China and recent employment data weighed heavily ahead of a speech by Federal Reserve Chair Jerome Powell.
The Dow Jones Industrial Average nosedived by 3.7%, losing around 1,500 points, edging towards correction territory. Simultaneously, the S&P 500 plummeted roughly 4.3%, with the broad-based index on track for its most severe downturn since 2020. The Nasdaq Composite, renowned for its technology focus, also fell sharply by 4.73%.
This market turmoil followed a severe escalation in U.S.-China trade relations. Declaring what some are calling “Liberation Day,” U.S. President Donald Trump enforced a 10% blanket tariff on all imports into America from elsewhere. Additionally, 60 nations face even steeper tariffs, compounding the initial charges.
In a further escalation on Wednesday, President Trump announced a new 34% tariff on all Chinese imports, a move that threatens to significantly deteriorate economic ties between the globe’s largest economies.
In retaliation, China stated on Friday its intention to implement a matching 34% tariff on U.S. imports, effective April 10. This reciprocal action aligns with China’s vow to counterattack promptly following President Trump’s intensification of the global trade hostilities.
