In response to inquiries from journalists on Air Force One, US President Donald Trump expressed readiness to engage in negotiations with other countries if they provided exceptional offerings in return. The President's statement followed previous announcements by White House officials indicating that the reciprocal tariffs recently imposed were non-negotiable, leading to uncertainty regarding Trump's tariff policies and causing a significant drop of around $2 trillion in the S&P 500 on Thursday, triggering concerns globally.
The unveiling of the "Liberation Day" tariffs caused alarm in the financial markets amidst fears of a potential global trade conflict that could potentially trigger an economic downturn, drawing comparisons to the Great Depression of the 1920s. Trump's declaration of reciprocal tariffs targeting 180 nations caught many by surprise due to its unprecedented scale and magnitude. Despite the ensuing market turmoil, Trump remained optimistic, assuring that any economic repercussions would be temporary and that the stock market would rebound strongly.
Financial analyst Michael Brown highlighted the persisting policy ambiguity, contributing to uncertainty in business and consumer sentiments and hindering effective risk assessment by market participants. Trump's imposition of a 10% base tariff on all countries, alongside additional duties on specific nations deemed as transgressors, intensified economic apprehensions. The White House confirmed the commencement of the 10% base tariffs on April 5, with reciprocal measures scheduled for April 9, allowing minimal time for negotiation.
In a day reminiscent of the tumultuous events of 2020 sparked by the COVID-19 pandemic, US stock markets underwent a severe drop. The Dow Jones Industrial Average plummeted over 1,600 points, representing a 3.98% decline, while the S&P 500 and Nasdaq Composite registered losses of 4.84% and 5.97%, respectively. Notably, tech giant Apple faced a 9.25% decline due to fears of supply chain disruptions and decreased sales, particularly in China, exacerbated by additional tariffs imposed by the Trump administration. Amid the unsettling economic landscape, Amazon and Meta Platforms saw declines of 9%, while Nvidia experienced a 7.8% drop. Other technology firms within the Magnificent Seven consortium witnessed dwindling share values ranging from 2% to 6%. Retailers such as Nike, Lululemon, and Ralph Lauren also suffered substantial losses, with drops of 14.4%, 9.6%, and 16.3%, respectively.