Synopsis
On April 4, US markets plummeted to two-year lows, largely influenced by President Trump's sweeping tariffs on imports. The dollar also weakened significantly. The Dow industrials fell 1300 points, while the Nasdaq dropped by 4.8%. The tariffs apply to over 100 countries, with varying rates impacting several major economies.Key Takeaways
- US markets hit lowest levels in two years.
- Trump's tariffs affect imports from over 100 countries.
- Dow industrials dropped 1300 points (3.1%).
- Nasdaq fell by 4.8% to significant lows.
- Canada and Mexico are exempt from new tariffs.
Washington, April 4 (NationPress) US markets experienced a significant decline on Thursday, reaching their lowest point in two years due to President Donald Trump’s extensive tariffs on imports from all trading partner nations. Concurrently, the US dollar fell to its weakest level.
The Wall Street Journal disclosed that the US market capitalization stood at $2.7 trillion by noon. At that same time, the Dow industrials dropped 1300 points, equating to a 3.1 percent decrease, while the tech-focused Nasdaq fell by 4.8 percent.
On Wednesday, President Trump unveiled comprehensive tariffs affecting imports from over 100 countries. The baseline tariff is set at 10 percent, with increased, country-specific rates for various trading partners, including India (26 percent), China (34 percent), and the EU (20 percent).
Other nations subjected to higher rates under these reciprocal tariffs include the UK (10 percent), Japan, South Korea, Indonesia, Taiwan, the EU, Vietnam, Cambodia, Switzerland, Bangladesh, Pakistan, and Sri Lanka.
Many of the affected countries are treaty allies of the US. The President remarked that even friends have been more unjust towards the US regarding trade than its adversaries.
He reiterated his longstanding grievances against countries with substantial trade surpluses with the US and those perceived to impose high import duties on American products.
While Canada and Mexico are exempt from these reciprocal tariffs, imports from these nations are already subject to a 25 percent levy, previously announced by Trump to curb the influx of illegal migrants and fentanyl, a potent opioid, across their borders into the US.
This round of reciprocal tariffs marks the fourth in a series of measures initiated by President Trump to reduce America’s trade deficit, combat restrictive trade practices, and encourage manufacturers to relocate to the US.
In the initial round, a 25 percent tariff on steel and aluminum imports was reinstated from his first term, increasing the aluminum levy from 15 percent.
Subsequent tariffs were imposed on Canada, Mexico, and China, particularly in response to China’s role as a source for precursor chemicals for fentanyl. This was followed by a 25 percent tariff on imported automobiles and auto parts, with plans to target pharmaceuticals next.
