- Trump expresses confidence (“markets will boom”) despite tariff-driven market plunge
- New 10% baseline tariff (54% effective China rate) confirmed, effective Apr 5
- S&P, Dow, Nasdaq see sharpest drops in years; broad stock losses recorded
President Donald Trump expressed strong confidence in the U.S. economy Thursday, even as markets recorded steep one-day losses following his administration’s confirmation of new trade tariffs.
Shortly after the closing bell, Trump declared, “The markets are going to boom… The country is going to boom,” dismissing investor concerns over the tariffs that triggered a broad sell-off.
The president described the economic impact as part of a larger strategy, comparing the tariffs to a medical procedure. “It’s an operation… like when a patient gets operated on,” he said, insisting temporary pain would lead to long-term recovery.
Tariff Details Confirmed: 10% Baseline, 54% China Rate
Trump’s remarks followed his administration confirming earlier Thursday that a new 10% baseline tariff on imports from all countries would take effect April 5th.
Additional tariffs will target countries imposing higher duties on U.S. goods. The White House clarified this means the effective rate for China will now reach 54%, combining existing and new levies.
Related: Trump Tariffs Shock Markets: Crypto Loses $100B, Bitcoin Price Unstable
Markets Tumble on Tariff Shock: Indices, Stocks Hit Hard
Markets reacted swiftly and negatively. The S&P 500 fell 4.84% to close at 5,396.52, reportedly its lowest since before Trump’s election win.
The Dow Jones Industrial Average lost 1,679.39 points (-3.98%), finishing at 40,545.93. The Nasdaq Composite dropped 5.97% to 16,550.61, its biggest one-day decline since March 2020.
Traders had reportedly anticipated a maximum tariff near 20%; the confirmed 10% minimum rate, with final rates exceeding expectations for many nations, triggered widespread concern over trade disruptions and costs.
Related: Will US Crypto Policies Cause a Financial Crisis? The ECB Thinks So
The decline impacted nearly every sector, with over 400 S&P 500 companies ending in the red. Multinational firms and retailers were hit hard: Nike dropped 14%, Apple fell 9%, while Five Below, Dollar Tree, and Gap saw losses of 28%, 13%, and 20%, respectively. Tech stocks like Nvidia (-8%) and Tesla (-5%) also suffered amid the risk-off sentiment.
White House Remains Confident in Long-Term Strategy
Despite the market downturn, Trump remained firm, reiterating the tariff strategy was planned and the outcome anticipated. The administration maintains the measures aim to establish balanced trade terms and ultimately strengthen the U.S. economy.
The president described current conditions as progressing well, identifying upcoming trade negotiations as the next step.
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