US Stock Market Plunges as Trump Announces Sweeping Tariffs – Global Trade War Fears Rise
The US stock market is experiencing a sharp decline today, April 3, 2025, following a major announcement by former President Donald Trump regarding new global tariffs. These tariffs include a baseline 10% levy on all imported goods, with significantly higher rates for key trade partners:
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China: 34% additional tariff (totaling 54%)
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Japan: 24% tariff
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European Union: 20% tariff
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Vietnam: 46% tariff
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India: 26% tariff
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Israel: 17% tariff
Market Reaction
Stock futures took a nosedive in response to the news:
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Dow Jones Industrial Average Futures: Down 2.8%, losing about 1,214 points
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S&P 500 Futures: Dropped 3.3%
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Nasdaq Futures: Declined 3.7%
Big Losers in the Market
Major US companies that rely on international trade saw their stock prices plummet in premarket trading:
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Apple: Down 7.5%
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Nike: Fell 13.7% due to heavy reliance on Vietnam-based manufacturing
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Tesla: Experienced a sharp decline
Safe-Haven Investments Surge
As panic spreads, investors are shifting towards safer assets:
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Gold: Prices reached record highs
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US Treasury Bonds: Yields dropped below 4.1%
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US Dollar: Slumped 2.1%, boosting the euro
Economic Concerns
Economists warn that these tariffs could trigger higher inflation and a potential global recession. Investors and businesses are closely watching for further developments as global markets react to the escalating trade tensions.
Stay tuned for more updates on this developing story.