Donald Trump Tariff Announcement Highlights: US stocks close down sharply on tariff fallout, S&P 500 suffers worst day since 2020

Wall Street led a global markets bloodbath Thursday as countries around the world reeled from President Donald Trump's trade war, while the White House insisted the US economy will emerge victorious.

The Dow Jones dropped more than three percent and the S&P 500 plummeted more than four percent. The Nasdaq toppled more than five percent.

Shock waves also tore through markets in Asia and Europe in the wake of Trump's Wednesday announcement, while foreign leaders signaled readiness to negotiate but also threatened counter-tariffs.

Trump slapped 10 percent import duties on all nations and far higher levies on imports from dozens of specific countries -- including top trade partners China and the European Union.

Separate tariffs of 25 percent on all foreign-made cars also went into effect and Canada swiftly responded with a similar levy on US imports.

In a sign of the real-world impacts expected to become common, Stellantis -- the owner of Jeep, Chrysler and Fiat -- paused production at some Canadian and Mexican assembly plants.

Trump dismissed the turmoil, insisting to reporters as he left for a weekend at his Florida golf resorts, that stocks will "boom."

Congress leader and Leader of Opposition in Lok Sabha Rahul Gandhi said on Thursday that the United States' decision to impose reciprocal tariffs will "completely devastate our economy" with the auto industry, pharmaceuticals and agriculture among sectors expected to face the brunt.

He asked the government what it is doing about this tariff.

"Our ally has suddenly decided to impose a 26 per cent tariff, which is going to completely devastate our economy--our auto industry, pharmaceutical industry, and agriculture are all on the line," Rahul Gandhi said in Lok Sabha

US President Donald Trump announced new import tariffs on Wednesday, outlining the rates to be imposed on countries around the world, with India facing a 26 percent tariff.

Rahul Gandhi contrasted the foreign policy of former Prime Minister Indira Gandhi to that of the Bharatiya Janata Party.

"I am wondering, someone once asked Indira Gandhi ji in the matter of foreign policy whether she leans left or right. She replied that 'I am Indian and I stand straight'. The BJP and RSS have a different philosophy; when asked to lean right or left, they say they bow their heads to every foreigner that comes," he alleged.

"This is part of their culture and history we know that. But we would like an answer from the government of India, what are you doing about our land? What are you going to do about this tariff that our ally has imposed on us," he asked.

Trade economists were scratching their heads on Thursday at the formula used by the White House to measure trade imbalances and inflict punishment on all its global trading partners.
Handed a chart in the White House Rose Garden, US President Donald Trump presented the rationale for how his administration would impose reciprocal tariffs on partners ranging from major powers like China and Europe to the smallest nations.

The figures presented bear little resemblance to actual tariff levels, however.

"This is to economics what creationism is to biology, astrology is to astronomy," former Treasury Secretary Larry Summers posted on X.

While Trump's chart claims China imposes a 67 percent tariff on American products, World Trade Organization data shows China's average tariff in 2024 was just 4.9 percent.

Similar discrepancies exist for the European Union (39 percent versus 1.7 percent) and India (52 percent versus 6.2 percent).

Administration officials explained they incorporated factors beyond tariffs, including environmental standards and "currency manipulation and trade barriers."

President Donald Trump promised tariffs that would raise U.S. import taxes high enough to mirror what other assess as trade penalties on American goods.
What he's actually imposing is based on far more complicated math.

Here's a look at how the White House got its numbers:

Why do the new tariff rates often differ by country?
The Trump administration has declared an “economic emergency” to bypass Congress and impose a 10% tariff on nearly all countries and territories. It has set even higher levies for about 60 nations that it says are the “worst" offenders.

The 10% global tariffs take effect at 12:01 a.m. Saturday. The higher tariffs set for specific countries are due to kick in at one minute past midnight on April 9.

Among the so-called worst offenders is China, which Trump argues protect its producers through “malicious” trade practices in addition to tariffs. Those efforts include actions such as imposing value added taxes on all goods, dumping overproduced products on markets to artificially deflate prices, or manipulating currency.

To determine how much higher those nations' rates should be, the White House says it calculated the size of each country’s trade imbalance on goods with the United States and divided that by how much America imports from that nation.

More than four years after the UK's withdrawal from the European Union became effective, Britain has escaped harsher US tariffs, facing only half of the 20 percent imposed on its EU neighbours.

But London's cautious response to the 10 percent tariffs imposed Wednesday by US President Donald Trump highlights its delicate juggling act between its two largest trading partners.

The Labour government is keen to avoid jeopardising negotiations over a post-Brexit trade deal with Washington.

"I recognise the announcements by the president last night put the UK in a relatively better position than, for instance, the EU," Business Secretary Jonathan Reynolds told Sky News.

A multi-polar world will become a reality faster than anyone had ever expected in the wake of the new tariffs announced by the US, Mahindra Group Chairman Anand Mahindra said on Thursday. In a post on social media platform X, Mahindra reposted a report of South Korea, China, and Japan, agreeing to cooperate for talks to improve free trade in the region amid concerns over US President Donald Trump's import tariffs, and wrote "the new tariffs announced by the U.S are a signpost of one major geopolitical development".

He further said, "The MultiPolar World will now become a reality faster than anyone had ever expected."

"We take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney added.

When questioned about potential future conversations with Trump, Carney provided a straightforward response. "If it's appropriate, we will," he said. "We agreed that we would talk as needed over the coming weeks, so it may happen. There's not one scheduled."

French President Emmanuel Macron on Thursday called for a suspension of investment in the United States until Donald Trump's "brutal and unfounded" new tariffs against Europe and the rest of the world were clarified.

"Future investments, investments announced in the last weeks, should be suspended for a time for as long as the situation with the United States is not clarified," Macron told a meeting of French companies also attended by French ministers and Prime Minister Francois Bayrou.

"What would be the message if big European actors invest billions of euros in the US economy at the very moment they are hitting us?" he asked.

Macron said Americans will be "weaker and poorer" after Trump's tariff announcement, which he described as "brutal and unfounded" and would have a "massive impact" on the European economy.

Canada announced a 25 per cent tariff on US-imported vehicles that do not comply with the Canada-US-Mexico Agreement (CUSMA), as a response to Trump's trade policies.

The announcement was made by Prime Minister Mark Carney at a press briefing in Ottawa. Carney confirmed that the tariff will also apply to non-Canadian components within CUSMA-compliant vehicles from the United States.

"Our tariffs will not affect auto parts because we know the benefits of our integrated production system," he said, whilst noting that the government is creating "a framework" that would allow automobile manufacturers to evade reciprocal tariffs by maintaining their Canadian production and investment commitments.

Brazil's President Luiz Inacio Lula da Silva said Thursday his country would take "all appropriate measures to defend" itself against import tariffs imposed by US counterpart Donald Trump.

"Faced with the decision of the United States to impose an additional tax on Brazilian products, we will take all appropriate measures to defend our companies and our workers," the leftist leader said at an event in the capital, Brasilia.

Mexican President Claudia Sheinbaum expressed satisfaction on Thursday regarding her nation's exemption from the latest US tariffs imposed by President Donald Trump.
She attributed this exclusion to the positive diplomatic relations between the two administrations.

Mexico faces significant economic exposure to US trade policies, particularly due to their interconnected markets and shared participation in the US-Mexico-Canada Agreement (USMCA).

The United States receives over 80 per cent of Mexico's exports, including approximately three million vehicles annually.

Mexico hosts numerous international automotive manufacturing facilities, with prominent companies such as Ford, General Motors, BMW, Volkswagen and Toyota operating assembly plants in the country.

Economy Secretary Marcelo Ebrard confirmed on Thursday that the USMCA remained unaffected, describing this as a significant diplomatic success.
He indicated that Mexico would negotiate optimal conditions for cross-border trade in automobiles, steel and aluminium over the following 40 days.

Ireland's Prime Minister Micheal Martin said Thursday his country and the EU will "weather the storm" triggered by new US tariffs, adding negotiations were the best way forward.

"There is no doubt that the imposition of tariffs by the US will have an adverse impact," Martin said at a joint press conference in Dublin with EU Commissioner for Justice Michael McGrath.

"It is important that we focus on factors that we can control, including improving our competitiveness and investing in infrastructure."

The Irish premier said he "deeply regrets" the 20 percent tariffs announced by US President Donald Trump on produce from the EU.

"We see no justification for this," Martin told a joint press conference with McGrath.

"The feedback so far from the US is, our sense is, that negotiations is the preferred route forward."

Switzerland is not planning to retaliate against the steep tariffs announced by US President Donald Trump "at this stage", the country's government announced Thursday.
"An escalation is not in Switzerland's interest," President Karin Keller-Sutter told reporters, with the government adding in a statement that "countermeasures in response to US tariff increases would result in costs for the Swiss economy... The (government) is therefore not planning any countermeasures at this stage".

At a garment factory in Ho Chi Minh City that exports T-shirts and underwear to the United States, staff were alarmed by "shocking" trade tariffs imposed on Vietnam that could severely impact their business.

A manufacturing powerhouse that counted the United States as its biggest market last year, the Southeast Asian nation was hammered with a thumping 46 percent tariff in President Donald Trump's global trade blitz.

Despite widespread fears it could be a key target over its huge trade surplus with Washington -- the third-largest after China and Mexico -- the size of the levies came as a bombshell for businesses and factory workers on Thursday.

"It's truly shocking," said Tran Nhu Tung, board chair at Thanh Cong, a factory in Ho Chi Minh City that makes clothes for DKNY and Walmart, among others.

"Especially in the textile industry, we did not anticipate (this). I thought that since Vietnam is a smaller country, the US would not impose such (high) tariffs," said Tung.

Harsh new trade tariffs imposed on Cambodia by US President Donald Trump are "not reasonable", the Southeast Asian country's commerce ministry said Thursday.
Cambodia was among the hardest-hit nations by Trump's "Liberation Day" raft of swingeing tariffs, singled out for a 49 percent levy.

The US retaliatory tariffs pose a substantial challenge for Indian gems and jewellery exports, as stated by the leading industry organisation GJEPC on Thursday, prompting them to request governmental intervention to protect the sector's enduring interests. The US administration has implemented 27 per cent reciprocal tariffs on India, citing high import duties on American products, as part of their strategy to decrease US trade deficit and enhance domestic manufacturing.

The Gem and Jewellery Export Promotion Council (GJEPC) expressed concerns that the Trump administration's 27 per cent reciprocal tariff on India would significantly impact both Indian exporters and American consumers.

"In the long-term, we foresee a reshaping of global supply chains. In the short-run, we anticipate challenges in sustaining India's current export volume of USD 10 billion to the US market.

"We urge the government of India to progress the Bilateral Trade Agreement between India and the US, as it would be crucial in navigating the tariff issues and securing long term interest of the sector," GJEPC added.

Spanish Prime Minister Pedro Sanchez said Thursday that the sweeping new tariffs announced by US President Donald Trump were a "unilateral attack" by Washington against Europe.

This measure marks a return to "19th century protectionism, which in my opinion, is not an intelligent way to meet the challenges of the 21st century," the Socialist leader added as he announced a package of measures worth 14.1 billion euros ($15 billion) to support Spanish sectors hurt by the tariffs.

Benchmark indices Sensex and Nifty settled lower on Thursday due to selling in IT and Teck shares and a global sell-off as US President Donald Trump unveiled reciprocal tariffs on 60 countries, including India. The 30-share BSE Sensex declined by 322.08 points or 0.42 per cent to close at 76,295.36. During the session, it plunged 809.89 points or 1.05 per cent to hit an intraday low of 75,807.55 but recovered some of the losses as pharma shares advanced.

The broader NSE Nifty fell 82.25 points or 0.35 per cent to settle at 23,250.10. The index declined by 186.55 points or 0.79 per cent to a low 23,145.80 in early trade but later pared some losses.

"The Nifty index opened lower in response to the US tariff announcements but saw some recovery due to resilience in select heavyweight stocks. This helped trim losses in early trades, leading to a range-bound session," Ajit Mishra - SVP, Research, Religare Broking Ltd, said.

The Parmigiano Reggiano Consortium's leadership expressed strong disagreement on Thursday regarding US tariffs on their renowned cheese, stating these measures were illogical as their product does not compete with American parmesan.

The Consortium's president, Nicola Bertinelli, explained that President Donald Trump's declaration of a 20 percent tariff on EU products would result in their duties rising from 15 to 35 percent in the United States.

He emphasised that implementing duties on their products would solely result in higher costs for US consumers without offering genuine protection to domestic producers, describing it as a decision detrimental to all parties involved.

European stock markets slumped at the start of trading Thursday after US President Donald Trump's latest tariffs salvo aimed at countries worldwide.
Frankfurt's DAX index was the biggest faller, shedding 2.2 percent, while the Paris CAC 40 retreated 2.0 percent. Outside the European Union, London's FTSE 100 lost 1.2 percent after Trump hit Britain less hard than the European Union.

Italian Prime Minister Giorgia Meloni cleared her diary Thursday to focus on the response to a hike in US tariffs imposed on goods from the European Union, her office said.
Meloni, who late Wednesday criticised the tariffs as "wrong" and said she would do everything to avoid a trade war, "has cancelled her scheduled engagements today, so that she can focus her attention on the actions to be taken", her office said.

Vietnam's prime minister requested the immediate establishment of a "rapid response team" after the country was hit with massive tariffs of 46 percent by the United States, according to the government's official news portal. During a meeting of the government standing committee, Prime Minister Pham Minh Chinh said ministries must be "calm, courageous (and) have proactive, flexible, timely and effective responses to all developments", a statement on the news portal said.

German Chancellor Olaf Scholz said Thursday that sweeping new US tariffs were "fundamentally wrong" but that Europe was open to further talks to end a worsening trade war.
"This is an attack on a trade order that has created prosperity all over the globe, a trade order that is essentially the result of American efforts," Scholz told a press conference.

China's commerce ministry on Thursday condemned US tariffs on auto imports as "protectionism and bullying" as 25 percent levies on the sector came into effect.
"The global automotive industry is highly dependent on transnational production and supply chains," ministry spokesman He Yadong said, adding: "It only highlights the unilateralism, protectionism, and bullying nature of the US measures."

China on Thursday warned the United States that "protectionism has no exit ramp" and urged Washington to drop fresh tariffs on imports.
"What the US needs to do now is correct its wrong practices and resolve economic and trade differences with other countries -- including China -- through fair, respectful and reciprocal consultations," foreign ministry spokesman Guo Jiakun said.

Britain is "in a relatively better position" than the European Union, Business Secretary Jonathan Reynolds said Thursday after US President Donald Trump imposed a lower tariff on the UK than its neighbour. "I recognise the announcements by the president last night put the UK in a relatively better position than, for instance, the EU," Reynolds told Sky News, adding however that its 10 percent levy was "a disappointment".

European stock markets slumped at the start of trading Thursday after US President Donald Trump's latest tariffs salvo aimed at countries worldwide.
Frankfurt's DAX index was the biggest faller, shedding 2.2 percent, while the Paris CAC 40 retreated 2.0 percent. Outside the European Union, London's FTSE 100 lost 1.2 percent after Trump hit Britain less hard than the European Union.

The US retaliatory tariffs are a major setback for the Indian gems and jewellery exports, apex industry body GJEPC said on Thursday as it urged the government to take steps to secure the long-term interest of the sector. The US has announced 27 per cent reciprocal tariffs on India saying New Delhi imposes high import duties on American goods, as the Donald Trump administration aims to reduce US' trade deficit and boost manufacturing.
The Trump administration's announcement of a 27 per cent reciprocal tariff on India would be a significant burden on Indian exporters and American consumers alike, the Gem and Jewellery Export Promotion Council (GJEPC) said in a statement.

"In the long-term, we foresee a reshaping of global supply chains. In the short-run, we anticipate challenges in sustaining India's current export volume of USD 10 billion to the US market.

"We urge the government of India to progress the Bilateral Trade Agreement between India and the US, as it would be crucial in navigating the tariff issues and securing long term interest of the sector," GJEPC added.

The US imports USD 11.58 billion gems and jewellery from India and exports USD 5.31 billion to the latter. The total bilateral trade between the US and India in the gems and jewellery sector is USD 16.89 billion.

Bilateral trade between India and the US includes natural and lab grown polished diamonds, gold and platinum jewellery, silver jewellery, imitation jewellery, rough diamonds, rough LGD, rough coloured gemstones, gold bar, silver bar and platinum bar, coloured gemstones.

Kama Jewelry MD Colin Shah said, it's a big setback for India as the US has announced retaliatory tariffs.

"While in the broader sense, it will be 27 per cent, the Gems and jewellery sector will be the most affected as import tariffs may be up to 20 per cent from the current '0' per cent on loose diamonds and 5.5-7 per cent on gold jewellery," Shah said.

Shah further noted that the US is one of India's largest jewellery export markets, accounting for almost 30 per cent of the share. Indian jewellery exports to the US are over USD 11 billion per year.

Experts said the retaliatory tariffs will significantly impact India's diamond and jewellery sector -- a cornerstone of its exports to the US, said the Council.

"India currently imposes a 20 per cent import duty on gold, silver, and platinum jewellery from the US. Efforts should be made to rationalise import duty as well as balance trade with all major nations. Import duties help protect local industries, but the retaliatory tariffs will end up negating this step by most governments," he added.

India levies "uniquely burdensome or duplicative testing and certification requirements" in sectors like chemicals, telecom products, and medical devices, making it "difficult and costly" for US companies to sell their products in the country, according to the White House. "India imposes its own uniquely burdensome and/or duplicative testing and certification requirements in sectors such as chemicals, telecom products, and medical devices that make it difficult or costly for American companies to sell their products in India," the White House fact sheet said, citing the example of India. "If these barriers were removed, it is estimated that US exports would increase by at least USD 5.3 billion annually," it added.

President Emmanuel Macron will meet on Thursday with representatives of French sectors "impacted by the tariff measures" announced by US President Donald Trump, his office said.
The meeting, happening at 1400 GMT, follows Trump on Wednesday declaring a 20-percent tariff on EU goods that the United States imports.

US President Donald Trump's tariffs were "highly unreasonable" and the government planned "serious negotiations" with Washington, Taipei said Thursday. "The Executive Yuan found the decision highly unreasonable and deeply regretted it, and will initiate serious negotiations with the United States," cabinet spokeswoman Michelle Lee said, after Trump announced sweeping tariffs that included a 32 percent levy on Taiwan.

Indian-American members of the US Congress and the diaspora community criticised the reciprocal tariffs imposed by President Donald Trump, calling them "reckless and self-destructive", urging leaders in both countries to engage in dialogue to address these challenges.

On Wednesday, Trump imposed a 26 per cent "discounted reciprocal tariff" on India. While making the announcement, he said "India charges us 52 per cent so we will charge them half of that - 26 per cent."

President Trump, in a historic measure to counter higher duties on American products imposed globally, announced reciprocal tariffs on about 60 countries.

The lawmakers also said that Trump's tariffs will likely make Indian goods less competitive.

Congressman Raja Krishnamoorthi said Trump's blanket tariffs are a tax on working families so that he can cut taxes for the wealthiest Americans.

"These latest so-called 'Liberation Day' tariffs are reckless and self-destructive, inflicting financial pain on Illinois at a time when people are already struggling to keep their small businesses afloat and put food on the table."

Krishnamoorthi, a Democratic lawmaker from Illinois, said the tariffs isolate the United States on the global stage, alienate America's allies, and empower its adversaries – all while forcing America's seniors and working families to bear the brunt of higher prices.

Urging Americans to call on Trump to end his "disastrous" tariff policies before he sends the country into a recession, Krishnamoorthi said the tariffs do nothing to strengthen the American economy or national security.

Congressman Ro Khanna said in a video posted on his social media handle that the tariffs announcement "isn't an April Fool's joke.

"Trump is literally trying to destroy our economy with his Liberation Day tariffs slapped overnight, no strategy, no consultation, no congressional input.

"What does this mean? Prices are going to go up. Prices for cars are going up. Prices for groceries are going up. Prices for home repairs and home building are going up, and there's total uncertainty," Khanna said.

He added that businesses don't know whether to invest, the stock market is down and "people are saying we could have a recession. We could have stagflation, meaning slow growth and higher inflation, all because of Trump's incoherent, incompetent economic policy."

Indian-American Congressman Dr Ami Bera said in a post on X "Let me be clear: these tariffs will not make America wealthy again. These costs will be passed onto YOU- the American consumer. This is not a tax cut. This is a tax hike."

Former advisor to President Joe Biden and Co-Chair for Economic Subcommittee for Asian American and Native Hawaiian/Pacific Islander (AANHPI) Commission Ajay Bhutoria told PTI that Trump's 'Liberation Day' initiative imposes a 26% reciprocal tariff on India's exports to the United States, alongside new tariffs on imports from China, Mexico, Canada, and Japan, significantly impacting both nations and beyond.

"This sweeping policy will likely make Indian goods-such as textiles, and pharmaceuticals-less competitive, while tariffs on other major trading partners will drive up the cost of automobiles, groceries, medical supplies, and countless other products, hitting American consumers hard with an estimated additional $2,500 to $15,000 in annual expenses."

Bhutoria said India's key industries face declining export volumes and financial strain, threatening millions of livelihoods and potentially weakening the strong US-India economic partnership, while American households grapple with rising prices for everyday essentials.

"This decision injects market uncertainty and risks disrupting global supply chains, possibly pushing Japan, South Korea, India and others to diversify markets or pursue countermeasures."

He urged leaders in both countries to engage in dialogue to address these challenges, "minimising the burden on American consumers and Indian producers alike, and preserving the collaboration that has long driven innovation and prosperity between our nations."

Asia Society Policy Institute Vice President Wendy Cutler said the reciprocal tariff rates will come as a "shock to our trading partners" and will cause harm to the US economy with higher prices, slower economic growth, and slowed down business investment.

"Our close partners appear to be treated similarly to our rivals, with China's reciprocal tariff rate just a tad higher than Taiwan. This is difficult to understand given Taiwan's open economy and extensive manufacturing FDI projects in the United States," she said.

Cutler added that America's Asian FTA partners were not spared with Korea's rate at 25 percent at the high end of the group. Asian countries in particular have been hard hit causing them sharp economic pain given their export-driven economies.

"While the President has underscored that he could have charged a lot more, our partners will not view his actions today as "kind." Our partners will now be under domestic pressure to respond while helping their firms weather this storm," she said adding that "We can expect global economic growth to start plummeting as trade flows decline, prices increase and businesses put off investments."

"Foreign delegations are likely to be all over Washington trying to secure exceptions. We can expect the use of IEEPA (International Emergency Economic Powers Act of 1977) to justify these actions being challenged in courts," she added.