Trump tariffs see financial markets tumble for second day amid trade war concern
by Olivia Sheed · ChronicleLiveOn April 1 2025, the Trump administration in the White House unveiled a wide array of tariffs directed at nearly every country it has trade relationships with, including an island full of penguins.
The US President referred to the tariff announcement as "liberation day", and timed it to come out after the New York Stock Exchange had closed for the day. The tariffs are the most severe enacted by the US since Smoot–Hawley Tariff Act amid the Great Depression.
The following morning, the US markets saw the largest fall since March of 2020 at the start of the COVID-19 pandemic.
As markets opened for the second day across the US, the markets have continued to dip, the Dow Jones index down a further 2.57%. The total loss over 5 days is 4.54%.
The Dow Jones is the primary stock market index with 30 prominent companies listed on stock exchanges in the United States. The index is one of the oldest and most commonly followed methods of determining stock market performance.
The hurt is being shared, with nearly every economy in the world seeing dips, though none as severe as the US market. It's estimated by economists that trillions have been wiped off global stock markets since the announcement came out.
The reactions of countries, both allied and otherwise, to the US have been quick and decisive.
China has hit the US with retaliatory tariffs of 34% on American goods, as Trump had imposed a 54% tariff on the Eastern manufacturing powerhouse.
The tech industry has seen the brunt of these tariffs, with the sheer volume of computer components manufactured in China. The Nasdaq Composite typically represents the performance of tech companies, and is a staggaring 6.46% down over the last 5 days, with no immediate sign of recovery.
Apple has been one of the single largest casualties of the trade disputes over the last few days. As of Thursday, the iPhone maker had lost more than $300 billion in market value.
Canada, one of Trump's first tariff targets, has also countered with 25% taxes on US cars, with newly-installed prime minister Mark Carney stating "If the US no longer wants to lead, Canada will," as he proposed a
In UK markets, Canary Wharf has been anxious all week. The FTSE 100 share index has tumbled hard today, currently down 399 points, or -4.72%, at 8071 points – its biggest one-day fall since the March 2020, matching US markets.
What this will mean for the future of the global economy is unknown. Many see the potential of a trade war more and more likely, which will harm Brits further.
Despite being hit with only 10% tariffs (the lowest Trump issued), the tariffs could not have come at a worse time amid the cost-of-living crisis and an uncertain future for many longstanding benefits.
The UK government has already drawn up a list of potential products to be hit with a retaliatory tariff, including livestock, food, alcohol, chemicals, and crude oil.
The tariffs imposed won't directly impact the average Brit, but they will have to be paid for by the manufacturer, who will likely pass the cost onto the consumer.
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