US stocks plunge as Trump announces new tariffs, sparking fears of global trade wars

American stocks plummeted on Thursday after President Donald Trump announced broad tariffs starting at 10%, with some countries facing even higher rates. The move heightened fears of a global trade conflict that could further harm an already sluggish U.S. economy.

The S&P 500 fell by 3.4%, heading toward its worst performance since September 2022. The Dow Jones Industrial Average dropped by 814 points, a loss of over 4%, while the Nasdaq Composite declined by 3%.

Multinational corporations saw significant losses, with Nike and Apple falling 11% and 8%, respectively. Companies that rely heavily on imports were hit particularly hard, with Five Below sinking 15%, Dollar Tree dropping 10%, and Gap plunging 15%. The tech sector also experienced declines, as investors adopted a more cautious approach, with Nvidia down 5% and Tesla slipping 3.5%.

The White House revealed a new 10% tariff on imports from all countries, set to take effect on April 5. Higher tariffs will be imposed on countries with tariffs exceeding those of the U.S., according to the administration.

In a press conference held at the White House Rose Garden, Trump stated, “We will charge them roughly half of what they have been charging us.” He clarified that the tariffs would not be entirely reciprocal, as they would account for both tariff rates and other trade barriers.

The American market has declined continually by roughly -8.4% at large since February 21, as Trump’s calls for trade wars increasingly intensified with the worst sell-offs taking place on Thursday.