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Markets Plunge as China Retaliates Against Trump Tariffs, S&P 500 Suffers Worst Day Since Pandemic Crash

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Wall Street suffered a stunning collapse on Friday, as escalating tensions in the U.S.-China trade war triggered the sharpest losses for American markets since the COVID-19 panic of March 2020. The S&P 500 tumbled 6% in a single day, erasing hundreds of billions in market value, while the Dow Jones Industrial Average plunged 2,231 points, or 5.5%. The tech-heavy Nasdaq fell 5.8%, sinking more than 20% below its December high and officially entering bear market territory.

The market chaos was sparked by China’s swift and aggressive retaliation to President Donald Trump’s sweeping tariffs earlier in the week. On Friday, Beijing announced a matching 34% tariff on all U.S. imports, set to take effect April 10, in direct response to the U.S. move. The dramatic escalation between the world’s two largest economies deepened fears that the prolonged trade conflict could tip the global economy into recession.

Even a stronger-than-expected U.S. jobs report—typically a highlight for markets—couldn’t slow the sell-off. Employers added more jobs than anticipated last month, underscoring the continued resilience of the labor market in early 2025. But the data was largely dismissed by jittery investors focused on the looming economic damage that could follow from a drawn-out tariff war.

The losses capped the worst week for the S&P 500 in five years. Of the index’s 500 companies, only 14 closed in positive territory on Friday. Crude oil fell to its lowest price since 2021, while copper and other key industrial commodities slumped, as markets braced for weakened global demand. Overseas, markets fared no better. Germany’s DAX dropped 5%, France’s CAC 40 shed 4.3%, and Japan’s Nikkei 225 fell 2.8%.

The Federal Reserve, which had been considering rate cuts to stimulate growth, now faces a difficult balancing act. Fed Chair Jerome Powell warned Friday that tariffs could drive up inflation expectations, potentially making it riskier to lower interest rates. He said the central bank’s responsibility is to keep long-term inflation expectations anchored, and that a “one-time increase in the price level” could morph into a more permanent inflation problem if not carefully managed.

Despite the turmoil, Trump remained characteristically defiant. Speaking from Mar-a-Lago before heading to his nearby golf course, he posted on Truth Social: “THIS IS A GREAT TIME TO GET RICH.” He also mocked Beijing’s response, claiming, “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!” Trump has repeatedly insisted the short-term pain from tariffs will be worth it, likening the trade battle to a medical operation that, while painful, will ultimately make the U.S. economy stronger. “Some pain” for Americans, he has said, is necessary to bring manufacturing back home.

Markets saw some of their steepest losses in companies with heavy exposure to China. DuPont’s stock fell nearly 13% after Beijing opened an antitrust investigation into its Chinese operations. GE Healthcare, which earned 12% of its revenue from China last year, dropped 16%.

Bond yields fell sharply as investors scrambled for safety, though they trimmed some losses after Powell’s remarks. The yield on the 10-year Treasury dropped to 4.01%, after dipping below 3.90% earlier in the day.

Analysts warned that the full economic impact depends on how long tariffs remain in place and how quickly negotiations resume. Trump suggested Vietnam may be willing to lower its tariffs to zero in exchange for a deal with the U.S., giving some hope for a potential de-escalation. Still, with global financial markets on edge, few were optimistic about a fast resolution.

“The speed of recovery will depend on how quickly officials negotiate,” said Brian Jacobsen, chief economist at Annex Wealth Management. “For investors, it could have felt like an operation performed without anesthesia.”

Yoon Suk Yeol Removed as South Korea’s President Over Martial Law Scandal

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South Korea’s Constitutional Court unanimously removed President Yoon Suk Yeol from office on Friday, marking a historic end to a controversial presidency that spiraled into crisis after his declaration of martial law just four months ago.

The court’s eight-member panel found Yoon’s actions to be unconstitutional, citing grave consequences for the country’s political, social, and economic stability. The martial law decree, though short-lived, triggered widespread unrest and prompted immediate backlash from lawmakers, civil society, and international observers.

 “By declaring martial law in breach of the constitution and other laws, the defendant revived a dark chapter in our history, shocking the public and causing confusion across society,” said acting Chief Justice Moon Hyung-bae during the nationally televised ruling.

Yoon’s removal sparked emotional scenes across Seoul. Outside the Constitutional Court, anti-Yoon demonstrators erupted in cheers, tears, and celebration, while supporters near the presidential residence responded with sorrow and anger. Despite heightened tensions, authorities reported no major incidents of violence.

Political analysts say the unanimous ruling helps restore constitutional order and removes a key source of political instability. However, deep societal divisions remain.

 “This is the greatest constitutional challenge South Korea has faced in a generation,” said Leif-Eric Easley, professor at Ewha University. “But the institutions have held.”

South Korea must now hold a new presidential election within 60 days. Lee Jae-myung, leader of the liberal Democratic Party, currently leads in early polling, though he faces multiple criminal charges.

“If Lee wins, it could lead to a significant shift in foreign policy, especially in relation to the U.S.,” said Duyeon Kim, senior analyst at the Center for a New American Security.

Yoon’s conservative People Power Party accepted the court’s ruling, though one of his lawyers denounced the verdict as “purely political.” Prime Minister Han Duck-soo, now acting president, pledged a smooth transition and public order.

The crisis began on December 3, when Yoon imposed martial law in response to escalating political resistance. Troops were deployed to the National Assembly, opposition offices, and election facilities. Protesters clashed with special forces as images evoked painful memories of South Korea’s military dictatorship era.

The martial law lasted just six hours before being struck down by lawmakers, including members of Yoon’s own party. The National Assembly impeached Yoon 11 days later.

The Constitutional Court ruled that Yoon’s declaration lacked legal basis and failed to meet procedural requirements, such as formal Cabinet deliberation. It also concluded that his political conflict with the opposition did not justify such extreme measures.

Yoon now faces criminal prosecution, including charges of rebellion—an offense punishable by life imprisonment or the death penalty. Though a district court canceled his arrest warrant in March, allowing him to await trial without detention, he has lost the presidential immunity that previously shielded him from broader legal action.

Observers say Yoon could soon face additional charges, including abuse of power and obstruction of legislative processes.

In a statement issued through his legal team, Yoon expressed “deep regret” for not meeting public expectations but stopped short of accepting the court’s decision.

“It has been the greatest honor of my life to serve our nation,” he said, adding that he would “pray for the country and its people.”

6 Dead in Alleged Dynamite Attack Amid Bolivia Gold-Mining Dispute

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A violent confrontation between rival gold-mining collectives in Bolivia has resulted in a deadly explosion that killed six people, officials confirmed on Thursday. 

The blast struck the Yani mining camp, located approximately 150 kilometers (90 miles) northwest of La Paz, amid an ongoing dispute over access to gold deposits. 

“There are six dead, and we have reports of missing persons,” said Jhonny Silva, a representative of the Hijos de Ingenio Mining Cooperative, one of the groups involved in the conflict. 

According to reports, members of the Hijos de Ingenio cooperative clashed with another mining group, Senor de Mayo, in a fight involving dynamite. The explosion damaged homes and left the nearby town of Sorata without electricity. 

“They have blown up machinery with dynamite, even a diesel tank,” Silva said, blaming the rival cooperative for the destruction. 

Bolivia’s mining collectives emerged as an alternative to state-run and private enterprises, providing employment to miners left jobless after the collapse of the state-owned mining company, Corporación Minera de Bolivia (COMIBOL), in the 1980s. 

Today, mining collectives dominate Bolivia’s extractive industry, outnumbering workers in the state and private sectors. However, critics argue that the cooperative system operates with minimal regulations, leading to dangerous working conditions, environmental damage, and frequent violent disputes over mining rights and market control. 

With an estimated 1,600 gold-mining collectives, clashes have erupted in the past, sometimes involving COMIBOL workers and security forces. In 2012, a similar conflict led to road blockades and a fatal dynamite attack in La Paz. 

Thursday’s explosion followed years of escalating tensions between the rival collectives, Silva said. 

Colonel Gunther Agudo, a local police officer, described the blast as “an explosion of great magnitude” and confirmed that rescue operations were ongoing.  Authorities have not yet confirmed whether any arrests have been made in connection with the attack. 

At Least 16 Dead as Refugee Boats Sink Between Turkiye and Greece

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At least 16 people have died after two refugee boats sank in the Aegean Sea between Turkiye and the Greek island of Lesbos, officials from both countries confirmed on Thursday. 

The incidents, involving approximately 66 passengers, occurred hours apart in separate locations. Authorities on either side of the maritime border were initially unaware of each other’s rescue operations. 

The Greek coastguard reported that one of its patrol boats discovered a five-meter (5.5-yard) dinghy taking on water and rescued 23 people, including 11 minors, eight men, and four women. The boat was carrying a total of 31 passengers, survivors said. 

A search and rescue operation involving helicopters, Greek coastguard vessels, and the FRONTEX European border agency recovered the bodies of seven victims—three women, two boys, a girl, and a man. Officials continued searching for a young girl reported missing by survivors. 

One survivor, a 20-year-old man, was arrested on suspicion of human smuggling after other passengers allegedly identified him as the boat’s pilot, according to the Greek coastguard. 

Meanwhile, in Turkiye’s northwestern province of Canakkale, authorities responded to a distress call from another vessel in the early hours of Thursday. The Turkish coastguard deployed three boats and a helicopter, rescuing 25 people. Nine bodies were recovered, and one person remained missing. Turkish media reported that survivors were taken to a local hospital for medical treatment. 

The short but treacherous maritime route between Turkiye and the Greek islands of Lesbos, Samos, and Rhodes continues to be a hotspot for shipwrecks, as refugees and migrants risk the dangerous crossing in search of safety and a better future in the European Union. 

South Africa’s White Afrikaner Separatists Seek U.S. Support for Statehood

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Orania, South Africa—A group of white Afrikaners seeking autonomy from South Africa has turned to the United States for support, hoping to gain recognition as an independent state. The community leaders from Orania, a self-sustaining enclave in the Karoo region, recently traveled to the U.S. to rally backing for their cause, leveraging growing right-wing American interest in their movement.

Founded in 1991 as apartheid was dismantled, Orania remains an all-white settlement with a population of 3,000. Residents run their own local administration, levy taxes, and provide municipal services, yet they remain under South African jurisdiction. Seeking further autonomy, the town’s leaders met with conservative think tanks and Republican figures in Washington and New York.

“We want recognition and investment to help Orania grow,” said Joost Strydom, leader of the Orania Movement. He emphasized that their appeal was not for financial aid but for investment in infrastructure, housing, and energy independence, which the town has already partially achieved through solar power.

China, the European Union, and several other global powers have been the focus of U.S. trade discussions, but Orania’s leaders are looking for a different kind of support. “South Africa is too diverse to be managed centrally,” Strydom said, arguing that Afrikaners should have their own homeland. He declined to confirm whether there had been direct talks with the Trump administration, and the U.S. State Department did not immediately respond to requests for comment.

South African authorities dismiss the idea of Orania’s independence. “Orania is not a sovereign country. It falls under South African law and the constitution,” said foreign ministry spokesperson Chrispin Phiri.

Critics argue that Orania’s separatist ambitions revive apartheid-era racial divisions. The Economic Freedom Fighters (EFF), a leftist political party, accused Orania of undermining national unity. “This is an attempt to destroy the unity of our country,” the party said in a statement.

Afrikaners, descendants of Dutch settlers, have historically sought autonomy. Their ancestors resisted British rule and later implemented apartheid, a system of institutionalized racial segregation. The end of apartheid in 1994 led to the election of Nelson Mandela as South Africa’s first Black president, marking a political shift that Orania’s founders opposed.

Former Orania Movement leader Carel Boshoff compared their pursuit of autonomy to Israel’s establishment after World War II. “We are building something new,” he said, envisioning an Afrikaner homeland stretching to South Africa’s west coast. Orania already operates its own local currency and self-sufficient economy through community funding and external donations.

Despite their ambitions, Orania’s leaders found that most U.S. discussions focused on white South Africans seeking residency abroad, following President Donald Trump’s 2018 comments suggesting America could offer asylum to white South African farmers facing land expropriation.

“We told them, ‘Help us here. We cannot simply export our people’,” Boshoff said, standing next to a portrait of his grandfather, Hendrik Verwoerd, widely regarded as the architect of apartheid.

The issue resonates with right-wing circles in the U.S., where critics of affirmative action and diversity policies have drawn parallels with South Africa’s post-apartheid Black economic empowerment laws. High-profile figures, including Trump ally Elon Musk, have publicly criticized these policies.

For Hanlie Pieters, a former Johannesburg resident who moved to Orania, these policies motivated her relocation. “What future will our children have with these quotas?” she asked while overseeing students at the town’s technical college.

Meanwhile, South Africa faces widespread economic hardship, with a third of its population unemployed, predominantly Black South Africans. Bongani Zitha, a 49-year-old resident of Soweto, has lived in a shack without running water since 1995. “People in Orania are doing well,” he acknowledged. “At least they have rights to health, education, and a future.”

Yet, he noted that, unlike during apartheid, “Orania’s residents are free to live wherever they choose.”

For Second Day, Wall Street Ends with Heavy Losses as Trump Tariff Fears Stoke Recession Concerns

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NEW YORK — Wall Street tumbled on Thursday, marking one of its worst single-day losses in years as U.S. President Donald Trump’s newly imposed tariffs fueled investor concerns over a deepening trade war and potential global recession.

Major stock indexes fell sharply as investors pulled out of riskier assets in favor of government bonds. The sell-off followed Trump’s announcement of a 10% tariff on most U.S. imports, along with steeper duties on numerous countries, heightening uncertainty across financial markets.

The tariff measures, expected to disrupt global trade, signaled a dramatic shift from earlier optimism surrounding Trump’s pro-business policies, which previously pushed stocks to record highs. The new economic landscape prompted investors to sell off positions, fearing retaliatory moves from global trading partners.

China swiftly pledged countermeasures, while the European Union faces a 20% tariff. Other key trading partners, including South Korea, Mexico, and India, signaled a wait-and-see approach before the new tariffs take effect on April 9, as they seek potential concessions.

Market volatility surged, with the CBOE Volatility Index (.VIX), often referred to as Wall Street’s “fear gauge,” hitting a three-week high. Analysts predict ongoing instability as the economic impact of the tariffs unfolds.

“There are still more questions than answers,” said Steven DeSanctis, small and mid-cap strategist at Jefferies Financial Group.

Market Performance:

– The S&P 500 (.SPX) lost 275.05 points, or 4.85%, closing at 5,395.92.

– The Nasdaq Composite (.IXIC) fell 1,053.60 points, or 5.99%, to 16,547.45.

– The Dow Jones Industrial Average (.DJI) plunged 1,682.61 points, or 3.98%, to 40,542.71.

Technology stocks, which previously led Wall Street’s rally, were hit hard. Apple (AAPL.O) dropped following an aggregate 54% tariff on Chinese imports, affecting its supply chain. Nvidia (NVDA.O) and Amazon.com (AMZN.O) also recorded significant losses.

The stock market has declined significantly since the start of Trump’s presidency, with both the S&P 500 and Nasdaq falling 10% from recent record highs, signaling a market correction driven by tariff concerns.

Amidst the turmoil, investors increased bets on multiple interest rate cuts by the Federal Reserve. Traders are now pricing in four rate cuts this year, with the first likely in June.

“The Fed has substantial tools to stabilize the market,” said George Bory, chief investment strategist at Allspring Global Investments. He noted that the probability of a rate cut in June has increased, with some even anticipating a reduction as early as May.

The economic outlook now hinges on upcoming payroll data and a speech by Federal Reserve Chair Jerome Powell, both expected to provide critical insights into U.S. economic stability and future monetary policy direction.

Retail stocks faced steep declines, with Nike (NKE.N) and Ralph Lauren (RL.N) hit by new tariffs targeting production hubs in Vietnam, Indonesia, and China. Banking giants Citigroup (C.N), Bank of America (BAC.N), and JPMorgan Chase & Co (JPM.N) also slid as economic uncertainty deepened.

The small-cap Russell 2000 index (.RUT) plunged, reflecting broader concerns over domestic economic health.

“Small-cap firms supply major corporations, so tariff pressures on big businesses inevitably impact their smaller suppliers,” DeSanctis added.

Energy stocks were not spared, as Exxon Mobil (XOM.N) and Chevron (CVX.N) declined amid a 6.8% slump in crude prices. The drop was exacerbated by OPEC+ accelerating production increases.

Consumer staples emerged as a rare bright spot, with the traditionally defensive sector benefiting from gains in Lamb Weston (LW.N), which reported strong earnings.

As markets brace for further uncertainty, investors remain on edge over global trade tensions and potential Federal Reserve interventions aimed at stabilizing the economy.

Israeli Strike on Gaza School Kills at Least 27, Death Toll Expected to Rise 

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Israeli airstrikes killed at least 100 Palestinians across the Gaza Strip on Thursday, including 27 who were sheltering at a school in the northern part of the territory, according to Palestinian health officials. The escalation comes as Israel intensifies its military offensive, which it says aims to eliminate Hamas and weaken its infrastructure. 

The Health Ministry in Gaza reported that among the dead at the school in the Tuffah neighborhood of Gaza City were 14 children and five women. Officials warned that the toll could rise as some of the 70 wounded suffered critical injuries. More than 30 other civilians were killed in airstrikes on homes in the nearby Shijaiyah neighborhood, according to medical records at Ahli Hospital. 

The Israeli military said it targeted a Hamas command and control center in Gaza City and took measures to minimize civilian casualties. A day earlier, Israel launched an airstrike on a United Nations building used as a shelter, killing at least 17 people. Hamas condemned the school attack as a “heinous massacre” of innocent civilians. 

As Israeli forces expanded operations, the military ordered residents in northern Gaza to evacuate to the west and south, warning of intensified attacks. Thousands of Palestinians fled on foot, carrying belongings in carts and makeshift bags. 

“My wife and I have been walking for three hours and covered just one kilometer,” said Mohammad Ermana, 72, who was searching for shelter. “We are desperate to find safety.” 

The United Nations humanitarian office reported that around 280,000 Palestinians have been displaced since Israel ended a ceasefire with Hamas last month. The humanitarian crisis continues to deepen amid food, fuel, and aid shortages. 

Israeli airstrikes overnight killed at least 55 more people across the territory, with hospitals in Khan Younis, central Gaza, and Gaza City receiving dozens of bodies, including those of young children and women, according to health officials. 

The Israeli military also announced an investigation into a March 23 operation where its forces reportedly opened fire on ambulances in southern Gaza. The United Nations stated that 15 Palestinian medics and emergency responders were killed, with their bodies and vehicles buried in a mass grave. Israeli officials initially claimed that the ambulances were operating suspiciously. 

U.N. human rights chief Volker Türk said there is an “increasing risk” of war crimes in Gaza and warned that blocking humanitarian aid could constitute the use of starvation as a weapon of war. 

As part of its military strategy, Israel is establishing a security corridor across Gaza to pressure Hamas, further restricting movement in the densely populated enclave. The war, which began after Hamas militants attacked Israel on Oct. 7, has left vast parts of Gaza in ruins and displaced millions. Gaza’s Health Ministry reports that more than 50,000 Palestinians have been killed, over half of them women and children. 

Israeli Prime Minister Benjamin Netanyahu, facing an arrest warrant from the International Criminal Court over alleged war crimes, arrived in Hungary on Thursday for diplomatic talks. Hungary, an ICC member, has not indicated whether it will comply with the warrant. 

The conflict, now in its sixth month, continues to escalate, with no immediate resolution in sight as airstrikes and evacuations persist across Gaza.

Myanmar Earthquake Death Toll Rises to 3,085 as More Bodies Recovered

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YANGON, Myanmar  — The death toll from a devastating earthquake that struck Myanmar nearly a week ago has risen to 3,085, according to the military-led government on Thursday, as search and rescue teams continue to find bodies in the rubble. 

In a brief statement, the military reported that 4,715 people were injured, and 341 remain missing. The 7.7-magnitude earthquake struck on Friday near Mandalay, Myanmar’s second-largest city, causing widespread destruction. Thousands of buildings collapsed, roads buckled, and bridges were destroyed across multiple regions. 

Local media reports have indicated a much higher number of casualties than official figures suggest. With telecommunications disrupted and access to many areas limited, the true extent of the disaster remains unclear, and the death toll is expected to rise significantly as more information emerges. 

The earthquake has deepened Myanmar’s existing humanitarian crisis, which has persisted since the military seized power in 2021, overthrowing the democratically elected government of Aung San Suu Kyi. The ongoing conflict has left more than 3 million people displaced and nearly 20 million in need of humanitarian assistance, according to the United Nations. 

Amid growing concerns that continued fighting could disrupt relief efforts, the military declared a temporary ceasefire on Wednesday, effective until April 22. The announcement followed similar unilateral ceasefires declared by armed resistance groups opposed to military rule. However, the military warned it would take “necessary” actions if opposition forces used the ceasefire to regroup, train, or launch attacks. 

In Bangkok, Thailand, where the quake caused the collapse of an under-construction skyscraper, rescue workers continue to search for survivors. Bangkok Governor Chadchart Sittipunt confirmed that the possible sound of life was detected amid the rubble. The collapse left 22 people dead and 35 injured, most of whom were in the unfinished building when it fell. 

The Myanmar disaster has underscored the challenges faced by humanitarian organizations working in conflict zones, highlighting the urgent need for coordinated international support to reach affected communities.

US Sends 2nd Aircraft Carrier to Middle East as Trump Threatens to Bomb Iran-Dailymail

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WASHINGTON — The United States has increased its military presence in the Middle East by deploying a second aircraft carrier, following threats from President Donald Trump to bomb Iran if it does not agree to a deal over its nuclear weapons capabilities.

The Pentagon extended the deployment of the USS Harry S. Truman aircraft carrier strike group and ordered a second flotilla to the region, Pentagon Spokesman Sean Parnell confirmed Tuesday. Additional warplanes, including F-35 fighters and B-2 stealth bombers, were also sent, a U.S. official said.

The move follows Trump’s warning that military action would be taken if Iran fails to make a deal. “If they don’t make a deal, there will be bombing,” Trump told NBC in a phone interview on Sunday.

Iran’s Supreme Leader Ayatollah Ali Khamenei responded on Monday, saying Iran believes a U.S. strike is unlikely but warned of a strong retaliation if provoked. “If they commit any mischief, they will surely receive a strong reciprocal blow,” Khamenei said.

Michael Knights, a senior fellow at the Washington Institute for Near East Policy, noted uncertainty about whether the carrier’s deployment was linked to Iran’s nuclear ambitions or ongoing attacks on the Houthis by the Trump administration. “One option is that… we’re signaling we don’t want Iran or the Houthis to broaden the fight at all,” Knights said. “We put more carriers in place, and we have the B-2 to say, ‘Iran, if you get involved in this, we can come for you too.’”

Trump’s decision follows his withdrawal from the Iran nuclear deal in 2018, which had restricted Iran’s nuclear weapons development in exchange for eased sanctions. Last month, he reversed his position, urging Iran in a letter to negotiate a new deal.

Iranian Supreme Leader Khamenei accused the U.S. of bullying and said Iran would not bow to American demands. French President Emmanuel Macron met with European leaders to discuss the threat of war, with French Foreign Minister Jean-Noel Barrot warning that a military clash seemed “almost inevitable.”

Scott Roecker, vice president of the Nuclear Threat Initiative, expressed optimism for diplomacy, noting that Iran often seeks negotiations when its regional power declines. “The diplomatic off-ramp is very much alive,” Roecker said, adding that Iran may use nuclear development as leverage rather than a genuine pursuit.

The 2015 UN Security Council resolution linked to the Iran nuclear deal allows France, Germany, the United Kingdom, Russia, or China to reimpose sanctions on Iran if the deal is violated. This “snapback” option expires in October 2025.

Meanwhile, Trump’s attacks on Iran-backed Houthis in Yemen have intensified, with at least 27 airstrikes targeting Houthi positions since last month. Defense Secretary Pete Hegseth’s leaked messages revealed the use of F/A-18 planes, MQ-9 Reaper drones, and Tomahawk missiles in strikes launched from a Navy ship.

Trump vowed to continue attacks until the Houthis stop targeting ships in the Red Sea. “Our attacks will continue until they are no longer a threat to Freedom of Navigation,” he said in a Truth Social post on Monday.

Joseph Votel, a retired U.S. Army general, described the strikes as a “standard counterterrorism approach,” noting they were more geographically dispersed and intense than those under former President Joe Biden, who had focused on defensive measures.

Lt. Gen. Alexus Grynkewich of the Joint Chiefs of Staff said strikes targeted command and control centers, weapons manufacturing sites, and terrorist training facilities. The Houthis claimed their attacks were retaliation for Israel’s siege of Gaza, which resumed after a two-month ceasefire ended in mid-March.

Trump’s Sweeping Tariffs Trigger Stock Market Fall, Whipping Trillions from 401(k)s-Dailymail

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U.S. stocks plunged in after-hours trading on Wednesday following President Donald Trump’s announcement of sweeping tariffs starting at 10%—with significantly higher rates for targeted countries. Within minutes, futures tracking the S&P 500 fell 2%, while the Nasdaq tumbled 3%, marking the most severe drop since the onset of the pandemic. 

The sharp sell-off came after Trump accused foreign nations of “ripping off” the United States and vowed to impose tariffs on imports worldwide. The measures were harsher than anticipated, sparking fears on Wall Street that the policy would stifle economic growth, fuel inflation, and disrupt global markets. 

Most Americans’ retirement savings, including 401(k) plans, are tied to stock market performance. As futures on the S&P 500, Nasdaq-100, and Dow Jones slumped 2.3%, 4.2%, and 2.3% respectively, the value of retirement funds faced immediate risks. 

Major importers were hit hard, with Nike falling 6% and General Motors down 3%. Already struggling companies, such as Nvidia and Tesla, shed about 3%, while retail chains like Five Below and Gap tumbled 11% and 12%. 

Though Wall Street’s main trading session ends at 4 p.m. in New York, after-hours trading extends until 8 p.m., allowing investors to react swiftly to breaking news. Futures contracts, which track key indexes like the S&P 500, Nasdaq, and Dow, as well as commodities like gold, are traded around the clock, except for a one-hour break starting at 5 p.m. 

If stock prices fail to recover, Americans could face significant losses when markets reopen at 9:30 a.m. on Thursday. 

President Trump declared the tariffs a “declaration of economic independence,” announcing a baseline 10% duty on all imports effective April 5, with higher rates on nations imposing steep duties on U.S. goods. From midnight in Washington, a 25% tariff would be applied to all foreign cars imported into the U.S. 

Displaying a chart during his speech, Trump outlined the U.S.’s planned tariffs: 34% on China, 20% on the European Union, 25% on South Korea, 24% on Japan, and 32% on Taiwan. Vietnam was singled out for a 46% tariff, while India was set to face a 26% duty despite Prime Minister Narendra Modi being described as a “great friend.” 

Lesotho faced the highest tariff at 50%, while Canada and Mexico were exempt, thanks to existing trade agreements. Trump emphasized that the policy was necessary to address decades of exploitation by foreign nations. 

Critics fear the tariffs could backfire, triggering a global trade war, driving up consumer prices, and destabilizing markets. Nevertheless, Trump promised that factory jobs would return to the U.S., even if consumers faced temporary pain. 

Stocks, which had risen earlier in the day, reversed course as Trump delivered a fiery tirade against foreign “cheaters” who “ransacked” American factories. “For nations that treat us badly, we will calculate the combined rate of all their tariffs, non-monetary barriers, and other forms of cheating,” he said, vowing to impose rates “approximately half of what they charge us.” 

As markets brace for further volatility, Trump’s tariffs signal a high-stakes gamble that could reshape the global economic landscape—whether for better or worse remains uncertain.

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