Stocks Tumble After Hours as Trump Announces Sweeping Reciprocal Tariffs

U.S. stocks nosedived in after-hours trading Wednesday as President Trump announced sweeping tariffs on imported products from a wide range of countries.

The SPDR S&P 500 ETF (SPY) declined more than 2% Wednesday afternoon, while the SPDR Dow Jones Industrial Average ETF (DIA) fell 1% and the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, dropped as much as 3%. 

Trump on Wednesday announced the U.S. would implement a minimum 10% tariff on nearly all countries. He also announced country-specific tariffs on 60 nations equivalent to half the rate the administration claims those countries levy on U.S. goods in the form of “tariffs, non-monetary barriers, and other forms of cheating.” The tariffs will be applied to all of America’s largest trading partners, and include a 20% rate on imports from the European Union, 26% on Japanese imports, and 34% on imports from China. 

Shares of Apple (AAPL), which has a major manufacturing presence in China, Vietnam, and India, were down about 6% in late trading. Electric vehicle maker Tesla (TSLA) was about 4% lower, while retail giants Amazon (AMZN) and Walmart (WMT) slid about 5% and 6%, respectively. 

Apparel and footwear manufacturers were among the hardest hit stocks, with the reciprocal tariffs aimed at a broad swath of countries responsible for manufacturing most U.S.-bound textiles. Nike (NKE) shares slumped 7%, and Swiss shoemaker On Holding (ONON) plummeted 17%. Canada-based Lululemon (LULU) was down more than 11% and Deckers Outdoor (DECK) slid nearly 12%. 

Treasury yields tumbled amid concerns the tariffs will slow U.S. growth and even stress the economy. The 10-year Treasury yield dropped to 4.13%, near its lowest level this year.