US stock futures plummet in the wake of Trump’s tariffs announcement

The reaction of President Donald Trump’s message to the tariffs did not take long to hit the US stock exchange, with Dow futures fell over 1000 points by Wednesday night.

The industrial average of Dow Jones fell by 1100 points or 2.7%. S& P 500 Futures lost 3.9%, and NASDAQ-100 futures fell by 4.7%.

While Trump said the tariffs would release the US from dependent on foreign goods, fears of a thorough international trade war seem to be reflected in the stock exchange in the immediate consequence.

Nike and Apple’s shares dropped by 7% and Amazon fell by over 5%, while NVIDIA scored 4.5% losses and Tesla was 6% on Wednesday.

The shares of US companies that depend to a large extent on imported products have collapsed the most distant, with the dollar tree dropping by 11% and five below, seeing 15% losses.

During the White House event on Wednesday, Trump presented an extensive set of basic tariffs for all trading partners, and what he described as “kind reciprocal” rates for nations, which claims to be the highest offenders in trade with the United States

“My colleagues Americans, this is the day of Liberation,” Trump of the Rose Garden said. “April 2, 2025, will be remembered forever when the US industry is reborn, on the day when America’s fate was restored and the day we started making America rich again,” he said.

The president has announced that the measures will include a minimum base rate of 10% for all trading partners and also more targeted penalties in certain countries, including China, the European Union and Taiwan.

Trump has raised a diagram with a list of nations and what the new US tariffs will be against them.

At the top was China, which Trump said he would be hit with a 34% tariff rate, as he claims to have charged the United States 67%.

34% reciprocal rate for China is in addition to the previous 20% tariff that Trump has hit the country – bringing the effective tariff rate of one of the largest trading partners in the United States to a total of 54%.

Although the long -standing effects of Trump’s newly raised tariffs have been seen, some experts have told ABC News before Wednesday that measures may endanger economic growth and employment, as obligations that are rammed by imports are at risk of increasing the cost of businesses relying on abroad.

“If both businesses and consumers start to worry and withdraw their costs, this is what the US can transfer to a recession,” Kara Reynolds, an economist at American University, told ABC News.

Mark Zandy, the chief economist at Moody’s Analytics, described the rates as a “forage for economic drop”.

ABC News Max Zan has contributed to this report.