Stock futures plummeted Thursday after U.S. President Donald Trump revealed new tariffs, starting at 10% for all countries, with higher rates for nations imposing more tariffs on the U.S. With fears of a global trade war circulating on social media, Dow Jones futures dropped 1,300 points, while S&P 500 futures fell 3.5%. This is one of its biggest one-day losses since 2022.
Investors reacted by selling off riskier growth stocks, fearing the economic fallout. Trump defended the tariffs, saying they were designed to match the rates other countries charged the U.S., including China’s new 54% effective tariff.
The European Union – now facing a 20% tariff – "is prepared to respond," European Commission President Ursula von der Leyen said. "The universal tariffs announced by the U.S. are a major blow to businesses and consumers worldwide," von der Leyen wrote in a post to X on Thursday.
The universal tariffs announced by the US are a major blow to businesses and consumers worldwide.
— Ursula von der Leyen (@vonderleyen) April 3, 2025
Europe is prepared to respond.
We'll always protect our interests and values.
We're also ready to engage.
And to go from confrontation to negotiation ↓ https://t.co/WbXqsN4ZX7
In defense of the move, National Security Advisor Mike Waltz emphasized that “economic security is national security,” and Secretary of Homeland Security Kristi Noem argued the tariffs would strengthen the U.S. supply chain and protect American workers.
Economic security is national security.
— Mike Waltz (@MikeWaltz47) April 2, 2025
Thank you President Trump for putting America first.
