Trump Imposes 50% Tariffs, Stock Markets Plunge Globally

On April 2, 2025, President Trump announced sweeping "Liberation Day" tariffs, introducing a universal 10% baseline tariff on nearly all U.S. imports, effective April 5, and reciprocal tariffs targeting 57 countries, set to begin on April 9. The tariffs vary significantly, with China facing a 34% additional tariff, Vietnam 46%, and the European Union 20%, among others. Following the announcement, the S&P 500 experienced a dramatic drop of more than 10% over three days, marking one of the worst sell-offs since World War II, with fears of a bear market as many stocks plummeted over 20% from their recent highs. Trump's tariffs aim to address the U.S.'s $1.2 trillion trade deficit, declaring a national emergency and closing loopholes that previously allowed low-value imports from China without fees. While Canada and Mexico are exempt from new tariffs, existing tariffs remain in place, impacting trade relationships. The chaotic market response underscores the uncertainty surrounding these trade policies and their implications for global commerce.