Trump’s Sweeping Tariffs On China And EU Spark Global Market Turmoil, Dow Plummets Over 1,500 Points

​On Thursday, U.S. President Donald Trump announced sweeping new tariffs on imports from major trading partners, including a 34% tax on Chinese goods and 20% on products from the European Union. This move aims to generate significant revenue for the U.S. government and address longstanding trade imbalances.

According to an Associated Press report, the S&P 500 dropped 3.3% in early trading, marking one of the worst declines among major stock indices. Tech giants took a major hit, with Apple-heavily reliant on Chinese manufacturing-falling 8.2%, Amazon sliding 6.9%, and Nvidia dropping 4.9%.

"Clearly, this announcement was close to a worst-case scenario, and markets were not prepared for it," said Angelo Kourkafas, senior investment strategist at Edward Jones, in a statement to AFP.

The aggressive tariff hikes have sparked concerns that inflation in the US could rise again while economic growth and employment might suffer if other nations retaliate with counter-tariffs. The impact rippled across various sectors, causing declines in crude oil prices, major technology stocks, and even small-cap companies that operate solely within the US real estate market.

Even gold, which has recently hit record highs as investors sought safer assets, saw a pullback. Meanwhile, the US dollar weakened against several currencies, including the euro and the Canadian dollar, as reported by AP.

Trump Defends New Tariffs

Earlier in the day, Trump justified the tariff hikes as a means to generate hundreds of billions of dollars in revenue for the US government and correct longstanding trade imbalances.

"For more than 50 years, taxpayers have been taken advantage of," Trump declared. "That ends now."

His announcement has triggered fresh economic uncertainty, raising fears of a prolonged trade conflict and potential disruptions to global markets.