Impact of Tariffs on the Stock Market

President Trump's announcement of sweeping tariffs on various trading partners led to a significant downturn in the stock market, with a loss of $2 trillion across U.S. financial markets, marking the worst day for markets since 2020. The Dow Jones Industrial Average dropped nearly 4%, while the S&P 500 and Nasdaq fell close to 5% and 6% respectively. Despite this turmoil, Trump insisted the economy would thrive and emphasized that the tariffs aimed to level the playing field by demanding that other countries reciprocate U.S. tariffs. Economists have warned that the tariffs could result in increased costs for consumers, potentially leading to higher inflation and even a recession.