Trump’s tariffs trigger market turmoil

The stock market crashed on Wednesday as President Donald Trump’s aggressive tariff measures against China sparked heightened volatility. The Dow Jones Industrial Average, S&P 500, and Nasdaq all experienced significant drops, with the CBOE’s Volatility Index (VIX), known as the “fear gauge,” soaring to levels not seen since the height of the COVID-19 pandemic in April 2020. Stock futures fell sharply as Trump’s tariffs, which have now reached 104%, took effect.

Donald Trump’s half-baked tariffs are crushing your retirement savings and plunging our economy into a recession.

Speaker Johnson needs to stand up for Americans and bring a bill to stop these tariffs to the House floor.https://t.co/PYYEUL72NM

— Congressman Shri Thanedar (@RepShriThanedar) April 7, 2025

China retaliated with an 84% tariff of their own on U.S. goods, rekindling fears of a prolonged trade war between the two economic giants. As markets opened, the Dow was down nearly 800 points or about 2%, while the Nasdaq declined 1.6% and the S&P 500 dropped 1.8%. Treasury Secretary Scott Bessent labeled China’s tariff retaliation as a “loser” for the Asian nation, citing the imbalance in the trade relationship that favors China’s exports to the U.S. fivefold compared to U.S. exports to China.

🧵 The stock market reacted to the tariff policies by dropping at a historic rate. The 6% decrease in market value on April 3 represented one of the worst days in market history and billions of dollars of lost wealth. https://t.co/2kzQZGlPp2

— UnidosUS (@WeAreUnidosUS) April 8, 2025

China has vowed to fight “to the end” against U.S. trade measures, with the Ministry of Commerce stating, “If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures.” President Trump encouraged companies to move their operations to the U.S., promising fewer regulatory hurdles and no tariffs. This is a GREAT time to move your company into the U.S. of America.

#ETNOWAlert | Stoxx Europe 600 extends drop to 4.2% as China hikes US tariffs!#TariffWar #Stoxx #SnP500 #NASDAQ100 pic.twitter.com/Iqx2SWHFxG

— ET NOW (@ETNOWlive) April 9, 2025

Tariffs spark market volatility

ZERO TARIFFS, and almost immediate Electrical/Energy hookups and approvals. No Environmental Delays. DON’T WAIT, DO IT NOW!” Trump announced on social media. A bipartisan group of senators, led by Sens. Rand Paul, R-Ky., and Ron Wyden, D-Ore., is introducing a resolution to repeal Trump’s global tariffs. The measure argues that “tariffs are taxes” and should be under congressional control, not the president’s unilateral authority. The resolution seeks to end the trade war and reverse the economic damage caused by the tariffs, which have led to significant market downturns and job losses. China’s central bank has instructed state-owned banks to reduce U.S. dollar purchases to stabilize its currency and curb the devaluation pressure on the yuan amidst the ongoing tariff battle. Financial advisors urge investors to stay the course with their long-term investment strategies despite the volatile market conditions, emphasizing the need for measured, not reactive, decisions in the current climate of elevated uncertainty. Image Credits: Photo by History in HD on Unsplash