NEWSLETTER

Sign up to read weekly email newsletter

Finance, Market, & Banking News

informabank.com
subscribe
Search
  • Home
  • Business Decisions
    Business DecisionsShow More
    The Impact of Autonomous Expenditure on Economic Growth.
    Deferred Fund Management Strategy
    Impact of Liquidity Trap
    Affectation- Linked Bonds
    Introduction and Definition of Swedish Rounding
  • Investment Asset
    Investment AssetShow More
    Mastering Fair Stock Price Calculation: A Smart Guide to Avoid Investment Mistakes
    Is it true that investment companies that fail to make a profit are caused by losses?
    Getting to Know Anatocism: Its Impact on Society
    Factors that Influence the USD Value in Major Pairs
    The Power of Coverdale Training Program.
  • Financial System
    Financial SystemShow More
    RipperFay: A Business Crime Phenomenon in the Digital Era
    Understanding Trumpcare: Efforts to Reform the Health System in the United States
    Understanding Nexus in the Context of Various Fields
    The role of imperfect competition that very important in the economy
    Benefits of Understanding Purchase Intention
  • Securities Markets
    Securities MarketsShow More
    Universal Basic Income (UBI)
    Melt-Up Phenomenon in Economics
    Main Pillars of Modinomics
    Average Annual Growth Rate (AAGR)
    The Rise of Green Chip Stocks and Their Performance
  • Economic Status
    Economic StatusShow More
    Apple Circumvents New US Tariffs With Urgent Airlift from India
    Challenges in Using Watchlists
    What is Behavioral Economics?
    What is Gambler Fallacy in Capital Markets?
    The Impact of Engels’ Economic Theory on Socialism and Communism
Reading: U.S. Stocks Tumble as Trump’s New Tariff Announcement Sparks Market Turmoil
Share
Aa
informabank.cominformabank.com
Search
  • Home
  • Categories
  • More Foxiz
    • Blog Index
    • Forums
    • Complaint
    • Sitemap
Follow US
Made by ThemeRuby using the Foxiz theme. Powered by WordPress
informabank.com > Blog > Economic Trends > U.S. Stocks Tumble as Trump’s New Tariff Announcement Sparks Market Turmoil
Economic Trends

U.S. Stocks Tumble as Trump’s New Tariff Announcement Sparks Market Turmoil

7 Min Read 110k Views

U.S. stock markets opened sharply lower on Monday, April 7, 2025, as investors reacted to renewed trade policy volatility following former President Donald Trump’s unexpected announcement of sweeping import tariffs. The Dow Jones Industrial Average dropped 450 points (1.3%) at the opening bell, while the S&P 500 and Nasdaq Composite fell 1.5% and 1.8%, respectively. The sell-off, driven by fears of a global trade war resurgence, marks the worst start to April since the 2020 pandemic crash and reflects mounting anxiety over the economic fallout of Trump’s “America First 2.0” agenda.

The Tariff Trigger: Trump’s Protectionist Revival

In a campaign-style rally last week, Trump declared a 25% tariff on $300 billion worth of imported goods, targeting electronics, automotive parts, and renewable energy components from China, Mexico, and the European Union (EU). The policy, framed as a measure to “rebuild U.S. manufacturing,” mirrors his 2018–2019 trade war tactics but with broader scope and higher rates. Notably, the tariffs also include a 10% levy on pharmaceuticals and medical devices, raising concerns about healthcare cost inflation. Analysts warn the move could disrupt fragile supply chains and reignite global inflation, which had cooled to 2.5% in 2024 after years of post-pandemic turbulence.

Sector-Specific Carnage

The market reaction was most severe in industries reliant on global trade:

  • Automotive Stocks: Ford and General Motors plunged 6% and 5.7%, respectively, as Trump’s tariffs on Chinese electric vehicle (EV) batteries and Mexican auto parts threaten to raise production costs. Tesla, which imports key components from Germany, slid 4.2%.
  • Tech Giants: Apple tumbled 3.5% amid fears of retaliatory Chinese restrictions on iPhone exports. Semiconductor firms like Nvidia and Intel fell over 4% due to tariffs on advanced chips.
  • Retail and Consumer Goods: Walmart and Target dropped 2.8% and 3.1%, signaling expectations of higher prices for imported goods.

Defensive sectors such as utilities and gold miners saw modest gains as investors fled to safe havens. The U.S. dollar surged 1.2% against a basket of currencies, while Treasury yields dipped as bond prices rose.

Investor Panic and Analyst Warnings

Market strategists attributed the plunge to PTSD from Trump’s first-term trade wars, which cost U.S. companies $316 billion in lost revenue and 300,000 jobs, according to Federal Reserve data. “This isn’t 2018—it’s worse,” said Goldman Sachs chief economist Jan Hatzius. “Supply chains are still recovering from pandemic shocks, and companies have less flexibility to absorb costs.” The CBOE Volatility Index (VIX), Wall Street’s “fear gauge,” spiked 35% to its highest level since January 2023.

Futures markets priced in a 70% chance of a Federal Reserve rate cut by July 2025 to counteract economic cooling, though Fed Chair Lisa Cook cautioned that “tariff-driven inflation could limit our options.”

Global Retaliation Looms

International leaders condemned Trump’s tariffs as destabilizing. China’s Commerce Ministry vowed “forceful countermeasures,” likely targeting U.S. agricultural exports like soybeans and Boeing aircraft. EU Trade Commissioner Valdis Dombrovskis called the move “a blatant violation of WTO rules” and hinted at digital taxes targeting U.S. tech firms. Mexico, the U.S.’s second-largest trading partner, warned of tariffs on U.S. corn and natural gas—a direct threat to Midwest farmers and energy firms.

Emerging markets also braced for collateral damage. Thailand’s SET Index fell 2.1%, while Vietnam’s Ho Chi Minh Stock Exchange dropped 3%, reflecting fears of redirected U.S. import scrutiny.

Domestic Political Firestorm

The tariffs ignited fierce debate in Washington. Democrats lambasted Trump for “repeating past mistakes,” with Senate Majority Leader Chuck Schumer urging legislative action to curb presidential trade authority. Republicans, meanwhile, rallied behind the policy, framing it as a necessary defense against “foreign exploitation.” The divide complicates efforts to pass a bipartisan economic stabilization package ahead of the 2026 midterms.

Corporate leaders were equally split. While U.S. Steel and solar panel manufacturer First Solar praised the tariffs as “critical for competitiveness,” retail and tech lobbyists warned of job losses and price hikes. The Business Roundtable revised its 2025 GDP growth forecast downward from 2.1% to 1.4%.

Long-Term Risks and Silver Linings

Beyond immediate losses, analysts fear prolonged uncertainty could freeze business investment. A Morgan Stanley survey found 68% of U.S. firms are delaying capital expenditures until trade rules stabilize. However, some sectors stand to gain:

  • Domestic Manufacturers: Industrial giants like Caterpillar and Deere & Co. rose 1.2% and 0.9% on hopes of reduced foreign competition.
  • Clean Energy: U.S. wind turbine producers like GE Vernova surged 5% as tariffs on Chinese solar panels incentivize local alternatives.

A Market at a Crossroads

As trading closed on Monday, the Dow trimmed losses to finish down 1.0%, suggesting cautious optimism about negotiated compromises. Yet, with Trump vowing “no retreat” and global partners digging in, the path to de-escalation remains narrow. For investors, the week ahead—packed with earnings reports from JPMorgan, Google, and ExxonMobil—will test whether corporate profits can offset trade panic.

In the words of BlackRock CEO Larry Fink: “Markets hate unpredictability, and Trump just gave them a heaping dose. The question now is how long the fever lasts.” As Washington and the world brace for the next move, one reality is clear: The ghost of Trade War Past has returned to haunt Wall Street—and this time, it’s wearing a 2025 campaign hat.

Sign Up For Daily Newsletter

Be keep up! Get the latest breaking news delivered straight to your inbox.
InformaBank
By signing up, you agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.
Author
Leave a comment Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

HOT NEWS

Effective Resource Allocation Strategy using Activity Based Budgeting

Investment Asset

Getting to Know the Suzuki Fronx: Comfort and Advanced Features Combined

Introduction If you’ve been following the rise of compact SUVs in today’s automotive world, you…

Investor Considerations in Investing

In today's competitive world of modern finance, making smart investment decisions is critical to an…

How the Bicameral System Works in Modern Politics

The bicameral system is a fundamental aspect of many modern political systems, including in many…

Latest News

The Detrimental Effects of Breaking Your Fast with Coffee
Health Tips
The 3-2-1 Backup Method: A Critical Strategy for Data Security and ISO Compliance
Digitalization
Indonesia Plans to Send TNI Personnel to Russia for Advanced Military Training
Political Views
Indonesian Ulema Council Condemns Attack on Palestinian Filmmaker, Denounces U.S.-Backed Israeli ‘Crimes’
Around The World

YOU MAY ALSO LIKE

5 Budgeting Habits Gen Z Swears By

Introduction Let’s face it—budgeting used to sound like something only accountants or your super-organized aunt would do. But today, Gen…

Economic Trends
2 Views 5 Min Read

How to Earn and Manage Passive Income in the Digital Era

Introduction In today's rapidly evolving digital world, the quest for passive income has become more than just a buzzword—it’s a…

Economic Trends
2 Views 5 Min Read

The Driving Factors Behind Bitcoin’s Soaring Price

Introduction Bitcoin’s price journey is a fascinating rollercoaster that has captured the imagination of investors, tech enthusiasts, and casual observers…

Economic Trends
187.5k Views 5 Min Read

Bill Gates Reveals Four Jobs That AI Won’t Replace in the Next Decade

Introduction In the ever-evolving landscape of technology, artificial intelligence (AI) has taken center stage, rapidly transforming the way we live…

DigitalizationEconomic Trends
22.4k Views 5 Min Read

MORE NEWS

Show All Articles

MotoGP Observer Carlo Pernat Analyzes Ducati’s Shifting Dynamics Amid Marc Marquez’s Early 2025 Success

In the latest twists and turns of the MotoGP 2025 season, renowned MotoGP observer Carlo…

Around The WorldSports Agenda
570.1k Views 5 Min Read

Pros and Cons of Carry Trade & Forex Trading

Understanding Carry Trade and Forex Trading. When it comes to investing and trading in financial…

Financial System
76.7k Views 6 Min Read

Russia Extends Rare Earth Offer to U.S. in Bid to Strengthen Bilateral Ties

On Tuesday, in a surprising turn of events amid a complex global economic landscape, Russia…

Political Views
624k Views 5 Min Read

Gold Investment: Cash vs. Credit—Weighing the Pros and Cons

Gold has long been a favored safe-haven asset, prized for its ability to hedge against…

Around The WorldEconomic Trends
798.6k Views 5 Min Read
Show More

We use our own and third-party cookies to improve our services, personalise your advertising and remember your preferences.

  • About Us
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • Business Decisions
  • Investment Asset
  • Financial System
  • Securities Markets
  • Economic Status

InformaBank US

The Business Centre 132, My Street Kingston, New York 12401 United States
Tel: +1-542-235-3011

© 2025  All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?