Markets Reel as Trump Unveils Aggressive Reciprocal Tariffs

Market Reaction (April 2, 2025 – After Hours Trading)

• Dow Futures: -2.4%

• S&P 500 Futures: -3.4%

• Nasdaq 100 Futures: -4.3%

🔻 Big Tech Hit Hard

• $Apple(AAPL)$ (AAPL): -6.9%

• $Nike(NKE)$ : -7%

• $Tesla Motors(TSLA)$ : -6.1%

• $NVIDIA(NVDA)$ : -4.9%

Trump's “Liberation Day” Tariff Plan

Tariffs

• 10% baseline tariff on all imports starting April 5

• Higher reciprocal tariffs for countries with significant trade imbalances:

  China: 34% (on top of existing 20% tariffs → effective 54%)

  Vietnam: 46%

  Taiwan: 32%

  European Union: 20%

  Japan: 26%

Exemptions: Steel, aluminum, autos, auto parts, and planned tariffs on copper, pharmaceuticals, semiconductors, and lumber.

Goldman Sachs: “Much Worse Than Expected”

• Market initially rallied on headlines of a 10% blanket tariff.

• Reality hit hard when Trump revealed steep country-specific hikes.

• Emerging markets likely to experience a severe economic shock.

Key Takeaways

Stocks initially rallied before cratering. Investors underestimated the extent of Trump's trade war escalation.

Inflation risks surge. Higher import costs may counteract Fed rate cuts and increase consumer prices. Potential for retaliation.

Canada is set to announce counter-measures Thursday. Other nations may follow. Supply chains in jeopardy. Companies reliant on imports—especially tech and manufacturing—face cost spikes.

What’s Next?

• April 4: Canada’s response

• April 5: Tariffs take effect

• April 5: U.S. nonfarm payrolls report

Final Thought: Trump’s tariff barrage has shaken global markets. The question now is: Will this be used as a negotiating tool, or is the U.S. heading into a full-blown trade war?

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This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.