U.S. stock futures nosedived Wednesday evening as investors grappled with President Donald Trump’s surprise announcement of sweeping tariffs, sparking fears of an escalating trade war and economic slowdown . The Dow Jones Industrial Average plummeted over 1,100 points (2.7%), while S&P 500 and Nasdaq 100 futures cratered 3.9% and 4.7%, respectively . The selloff intensified after Trump detailed a baseline 10% tariff on all imports, with punitive rates as high as 54% for China and 25% for Mexico, Canada, and the European Union .
Market Carnage: Tech Giants Bear Brunt
Tech stocks led the rout, with Apple (AAPL) plunging 7% in after-hours trading due to its reliance on Chinese supply chains . Tesla (TSLA) and Amazon (AMZN) fell 6% and 5%, respectively, while retailers like Nike (NKE) and Walmart (WMT) slid 7% and 6% . Analysts labeled the tariffs “worse than the worst-case scenario,” warning of disrupted supply chains and surging inflation .
Administration Defiance, Analysts Pessimistic
Treasury Secretary Scott Bessent dismissed the turmoil as a “Mag 7 problem, not a MAGA problem,” downplaying the impact on broader markets . However, economists warned of prolonged volatility, with JoAnne Bianco of BondBloxx citing “detrimental economic impacts” from the tariffs . Chris Zaccarelli of Northlight Asset Management noted fleeting hope that tariff rates might ease during negotiations but acknowledged traders are “shooting first and asking questions later” .
Context & Implications
The move marks a sharp escalation in Trump’s trade policy, which has already strained relations with key allies . While the administration framed the tariffs as a negotiating tactic, analysts fear they could stifle global growth and reverse recent market gains . The S&P 500 saw 91% of its stocks decline post-announcement, reflecting widespread investor anxiety .
As uncertainty looms, all eyes turn to international responses and whether the tariffs will catalyze diplomatic talks or deepen economic fractures . For now, markets remain in freefall, with no clear end in sight.