US markets tumble: Donald Trump's new tariffs spark biggest Dow wipeout since 2020

Wall Street suffered its worst day since the 2020 Covid crash as US stocks plummeted on Thursday, shedding more than $2 trillion in market value following President Donald Trump’s sweeping tariffs on foreign imports. The S&P 500 tumbled 4.8%, the Dow Jones Industrial Average lost over 1,600 points (4%), and the Nasdaq plunged 6%, rattling investor confidence and fueling recession concerns.

Economists warned of prolonged economic uncertainty as businesses brace for higher costs and potential retaliatory measures. Retailers, tech firms, banks, and airlines bore the brunt of the selloff, with major companies seeing double-digit declines. “This is a game changer, not only for the US economy but for the global economy,” said Olu Sonola of Fitch Ratings, predicting a high risk of recession.

Despite the turmoil, Trump defended his tariffs, claiming they would ultimately strengthen the economy. “The markets are going to boom, the stock is going to boom, the country is going to boom,” he insisted. As investors reeled, Trump attended a LIV Golf event and traveled to Mar-a-Lago, while White House officials scrambled to justify the policy.


Investors dump shares as recession fears mount; Retail, tech, banking sectors hit hardest
The selloff impacted nearly every sector. Retailers, tech firms, airlines, and banks were among the worst performers as concerns grew that consumers would cut spending and reduce demand.

“Obviously, the tariffs are higher and worse than people expected,” said Tom Cahill of Ventura Wealth Management. “It’s going to take some time to sort out exactly what the effects are going to be, not only on the economy, but also on company earnings.”

Consumer spending, which makes up 70% of US economic activity, is expected to slow if companies pass on tariff costs. “If consumers pull back their spending because of higher prices, businesses will produce fewer goods and economic growth could stall or contract,” AP reported.

Breakdown of worst-performing sectors Airlines Airlines projected strong profits earlier in the year, but rising costs could deter consumer travel:

• United Airlines: down 15.6%
• American Airlines: down 10.2%
• Delta Air Lines: down 10.7%

Clothing and shoes Most US apparel brands rely on overseas manufacturing:

• Nike: down 14.4%
• Under Armour: down 18.8%
• Lululemon: down 9.6%
• Ralph Lauren: down 16.3%
• Levi Strauss: down 13.7%

Retailers Heavy importers suffered major hits:

• Amazon: down 9%
• Target: down 10.9%
• Best Buy: down 17.8%
• Dollar Tree: down 13.3%
• Kohl's: down 22.8%

Technology Global supply chains expose tech firms to tariffs:

• Apple: down 9.2%
• HP: down 14.7%
• Dell: down 19%
• Nvidia: down 7.8%

Banks Concerns about lower borrowing and spending:

• Wells Fargo: down 9.1%
• Bank of America: down 11.1%
• JPMorgan Chase: down 7%

Restaurants Reduced discretionary spending hits food chains:

• Starbucks: down 11.2%
• Cracker Barrel: down 12.7%
• Cheesecake Factory: down 9.4%

Automakers Relatively insulated from the tariffs—though still impacted:

• General Motors: down 4.3%
• Ford: down 6%
• Tesla: down 5.5%
• Stellantis: down 9.4%

Trump defends tariffs, says “markets will boom”
Meanwhile, as global markets reeled from his sweeping tariffs, US President Donald Trump on Thursday defended the move, claiming it would ultimately strengthen the economy.

“I think it’s going very well. It was an operation like what a patient gets operated on, and it’s a big thing,” Trump told reporters. “We have six or seven trillion dollars coming into our country… The markets are going to boom, the stock is going to boom, the country is going to boom.”

Despite US stocks suffering their worst day since 2020, Trump remained defiant. On Truth Social, he posted: “ The operation is over! The patient lived and is healing… The patient will be far stronger, bigger, better, and more resilient than ever before. Make America great
again!"

On Wednesday, Donald Trump announced sweeping “Liberation Day” tariffs, including a 10% base duty on most countries, 20% on the EU, 25% on South Korea, and 24% on Japan.

Analysts warned of a looming recession and inflation risks. “Here you have a tremendous amount of uncertainty... that’s why the market is heading for a bear market,” said Adam Sarhan of 50 Park Investments.

As markets tumbled, Trump attended a LIV Golf tournament before heading to Mar-a-Lago, while White House officials defended the tariffs on news networks.