On April 4, just two days after President Donald Trump unveiled his sweeping tariff plan on what he called “Liberation Day,” Wall Street descended into turmoil. The Dow Jones Industrial Average plunged over 2,200 points as China hit back with harsh retaliatory tariffs, triggering a staggering $6.4 trillion loss in global market value.
Other indexes also saw their values plummet with the tech-heavy Nasdaq dropping by 962.82 points, or 5.8 percent, while the S&P 500 was down 322.44 points or 5.97 percent.
Global stock markets also saw their value plummet after Trump announced a blanket 10 percent tariff on all goods from all countries.
In an interview with CNN, secretary Karoline Leavitt said, “To anyone on Wall Street this morning, I would say trust in President Trump.”
“This is a president who is doubling down on his proven economic formula from his first term… this is indeed a national emergency… and it’s about time we have a president who actually does something about it,” she added.
Success
You are now signed up for our newsletter
Success
Check your email to complete sign up
China’s announcement of retaliatory tariffs has triggered the largest stock market plunge since 2020, during the COVID-19 pandemic.
In addition, according to Bank of America, investors pulled a staggering $10.05 billion out of U.S. equity funds over the past week alone.
RELATED:
China hits back
The major sell off followed China’s announcement of punishing 34 percent retaliatory tariffs on all goods imported from the United States.
The Finance Ministry of the People’s Republic of China (PRC) said Friday, April 4 that the tariffs would come into effect on April 10, causing U.S. stock futures and European markets to fall sharply.
“China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner,” the finance ministry said.
In total, the United States now levies a 54 percent tariff on all Chinese goods coming into the country, something that the Chinese ministry said was “inconsistent with international trade rules” and something that “seriously” undermines Chinese interests, as well as endangers “global economic development and the stability of the production and supply chain.”
The PRC also retaliated by placing 11 American firms on their “unreliable entities list” that Beijing says have violated market rules or contractual commitments.
Beijing has also filed a formal complaint against the United States with the World Trade Organization, alleging that Trump’s tariff policy “seriously violates WTO rules, seriously damages the legitimate rights and interests of WTO members, and seriously undermines the rules-based multilateral trading system and the international economic and trade order.”
Trump immediately hit back, posting on his social media platform, Truth Social, “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”
