Stock Markets Slide Deeper Amid Trump Tariffs Fallout
New York, April 4, 2025 – Global stock markets plunged further into turmoil on Friday morning as the fallout from President Donald Trump’s sweeping “Liberation Day” tariffs, enacted on April 2, continued to rattle investors and stoke fears of an escalating trade war. The S&P 500 nosedived nearly 5% on Thursday—the steepest single-day drop since June 2020—shedding $2.4 trillion in value, while key foreign indices followed suit, deepening a sell-off that has erased Wall Street’s gains since Trump’s November 2024 election win. As Asian and European markets opened Friday, the downward spiral showed no signs of abating, with analysts warning of a potential global recession.
Wall Street’s Worst Day in Years
Thursday’s carnage on Wall Street set the tone, with the Dow Jones Industrial Average tumbling 2.8%, the S&P 500 sliding 4.8%, and the tech-heavy Nasdaq cratering 6%. Big-name casualties included Apple and Nike, which saw double-digit losses as their reliance on imported goods collided with Trump’s 10% baseline tariff and higher reciprocal duties—54% on China, 25% on Canada and Mexico, and 20% on the EU. Tesla, a market darling in 2024, plunged 15%, erasing $125 billion in value, as investors fretted over CEO Elon Musk’s dual role in Trump’s administration and slumping car sales.
“The depth and breadth of these tariffs caught markets off guard,” Carol Schleif, chief market strategist at BMO Private Wealth, told Reuters. “It’s nerve-wracking—investors are realizing this could meaningfully hit growth and inflation.” Posts on X captured the panic: “Trump’s tariffs are tanking everything—S&P’s down 8.3% from its February peak,” one user noted, reflecting a shift from post-election optimism to stark dread.
Global Markets Reel
The shockwaves rippled worldwide. Japan’s Nikkei index shed 3.5% by Friday morning, with the broader Topix falling 4.45%, while South Korea’s KOSPI dropped 1.7% amid domestic political upheaval over President Yoon Suk Yeol’s impeachment. India’s Nifty 50 and BSE Sensex each fell over 1%, erasing earlier resilience tied to lower tariffs than rivals like China (54%) and Vietnam (47%). Australia’s S&P/ASX hit an eight-month low, down 2%, per ABC News. Hong Kong’s Hang Seng, already off 1.9% on Thursday, continued its slide.
European futures pointed to more pain as London, Frankfurt, and Paris braced for opening losses, following a 1.3% drop in the Euro Stoxx 50 on Thursday. “This isn’t just a U.S. story—it’s a global crisis,” Mona Mahajan, head of investment strategy at Edward Jones, told Reuters, highlighting the risk of retaliatory tariffs from allies and adversaries alike.
Tariffs Trigger Trade War Fears
Trump’s executive order, dubbed a “national emergency” by trade aide Peter Navarro on CNBC, imposes duties to match or exceed those faced by U.S. exports—a move Navarro insisted isn’t negotiable, though Trump hinted at talks “if they offer something phenomenal.” China, facing a 54% tariff wall, vowed “necessary countermeasures” by April 10, eyeing U.S. farm goods and rare earths. The EU, hit with 20%, finalized $28 billion in retaliatory duties, while Canada and Mexico—slapped with 25%—promised levies by mid-April, shaking North American supply chains.
Consumer goods are in the crosshairs. Analysts warn iPhone prices could jump 30-40% if Apple passes on costs, per Reuters, while the Consumer Brands Association flagged price hikes for coffee, bananas, and toilet paper—staples reliant on tariffed nations like Guatemala (47%). “Households will feel this first in the grocery aisles,” a Washington Post report noted.
Safe Havens Surge, Uncertainty Looms
Investors fled to safety, pushing gold to a record $3,167.50 per ounce overnight and driving 10-year U.S. Treasury yields down to 4.22% as bond prices rose. The dollar weakened, and oil slumped—Brent crude fell 5.8% to $70.61 a barrel—amid fears of dampened global demand. Bitcoin dropped 5% to $91,439, signaling a broader retreat from risk assets.
Uncertainty reigns. Goldman Sachs’ Lindsay Rosner told reporters the economic drag hinges on retaliation and negotiation outcomes, while J.P. Morgan raised global recession odds to 60%. “There’s more downside than upside right now,” Siebert Financial’s Mark Malek warned Reuters, though some see a buying opportunity if Trump softens his stance. For now, as markets slide deeper into the tariff abyss, the world waits—nervously—for the next move in this high-stakes trade gamble.
