Trump's New Tariffs Send Stocks Plunging, Global Markets Slump

Global markets plunged on Thursday as investors grappled with the ramifications of President Trump's announcement of new tariffs on U.S. trading partners. The Dow Jones Industrial Average plummeted 1,070 points, or 2.5%, to close at 41,156, while the tech-heavy Nasdaq cratered 752 points, or 4.3%, and the broader S&P 500 sank 3.2%.

Trump's Tariff Announcement Sparks Market Turmoil

President Trump unveiled a sweeping tariff plan on Wednesday, imposing a 10% baseline tariff on all U.S. trading partners and higher levies on dozens of countries that impose significant taxes on American exports. The administration asserts that the goal is to foster fairness in global commerce, encourage companies to expand within the U.S., and generate federal revenue. However, experts caution that a sharp escalation in tariffs, coupled with potential retaliatory measures from other nations, could fuel inflation, dampen consumer and business spending, and impede economic growth.

Concerns Over Economic Impact

Solita Marcelli, Chief Investment Officer Americas at UBS Global Wealth Management, expressed the prevailing sentiment among investors: "Market uncertainty is likely to remain elevated in the weeks ahead, as investors consider likely downgrades to consensus U.S. economic and earnings growth forecasts, the risk of a tit-for-tat escalation in tariffs, and the potential scope for tariffs announced to be negotiated down."