The Dow plunges by 1,300 points as stocks tumble on Trump's big tariffs reveal

1 week ago 3

Josh Fellman

Thu, Apr 3, 2025, 8:55 AM 3 min read

The S&P 500 plunged 3.8% and the Nasdaq Composite scale fell 4.9% astatine 11:45 a.m. EDT. For the Magnificent 7, declines were 8.1% for Apple (AAPL), 7.6% for Amazon (AMZN), 6.4% for Meta (META), 6.2% for Tesla (TSLA), 6.5% for Nvidia (NVDA), 2% for Microsoft (MSFT), and 3.2% for Google’s genitor Alphabet (GOOGL). Airlines, retailers and large banks besides took large hits.

“One large question was: Did Trump truly mean to enforce the tariffs” oregon were they a feint aimed astatine drafting concessions, said Melissa Brown, caput of concern determination probe astatine SimCorp (SIM). “From what helium said, it does look much apt that he’s really going to enforce them. It’s not conscionable talk.”

That said, the implementation and effects of the tariffs are inactive not 100% clear, which volition inactive marque it hard for CEOs to plan, Brown told Quartz. The duties besides marque the Federal Reserve’s occupation overmuch hard due to the fact that the levies could some summation costs and depress output.

“I don’t deliberation a commercialized warfare is peculiarly bully for the banal market,” Brown said. “It’s not the decease knell for the U.S. economy, but it could beryllium precise harmful for pockets of it.”

The baseline 10% tariff connected each countries volition spell into effect Saturday astatine 12:01 a.m. ET; the reciprocal levies are scheduled for enactment connected April 9 astatine 12:01 a.m. ET.

China volition beryllium deed with 34% tariffs, portion the European Union volition beryllium slapped with 20% duties, according to a graph Trump held up astatine a quality conference. Vietnam, Taiwan, and Japan volition beryllium deed with respective duties of 32%, 24%, and 26%.

The dense tariffs connected Asian countries volition measurement heavy connected footwear and apparel makers, which bash overmuch of their manufacturing successful the region. Shares of Nike (NKE) plunged 10%, portion those of Lululemon (LULU) plummeted 12%, and those of Uggs- and Hoka-maker Deckers (DECK) tumbled 12%.

Existing import taxes connected Canadian and Mexican goods won’t beryllium affected, with exemptions for USMCA-compliant products continuing. General Motors (GM), Ford (F) and Stellantis (STLA) stocks extended their declines.

Trump’s tariffs volition adjacent the de minimis exemption that allows small-value packages to beryllium shipped directly, duty-free from China. The shares of PDD (PDD), which owns Chinese buying tract Temu — a beneficiary of the existent strategy — fell 4.5%.

David Wagner, portfolio manager and caput of equities astatine Aptus Capital, was little acrophobic astir the tariffs, saying they’ll lone impact astir 15% of the system — which continues to payment from user spot and a beardown labour market.