Stocks plunge after Trump announces sweeping tariffs

Stocks plummeted Thursday as investors reacted to President Donald Trump’s late-Wednesday announcement of new tariffs targeting nearly all U.S. trading partners, agencies reported.

The Dow Jones Industrial Average fell 3.7%, or more than 1,500 points, in afternoon trading, while the S&P 500 dropped 4.5% and the Nasdaq Composite tumbled 5.6%. The declines erased gains from earlier in the week, with all three major indexes nearing session lows.

The new tariffs include a minimum 10% levy on imports from nearly all countries, as well as country-specific tariffs on 60 nations. The White House said the measures are meant to counter what it called unfair trade practices, including foreign tariffs and non-monetary barriers. Major U.S. trading partners, including the European Union, Japan and China, will face higher rates.

Markets had been volatile ahead of the announcement, with the S&P 500 and Nasdaq posting their worst monthly losses since 2022 in March. Investors worry the tariffs could reignite inflation, slow economic growth and hurt multinational companies.

The 10-year Treasury yield, which influences borrowing costs for mortgages and other loans, fell to 4.06% Thursday, down from 4.20% at Wednesday’s close. It briefly dropped to 4.00%, its lowest level since October, as economic concerns grew.

Oil prices also fell sharply after OPEC+ said it would boost production starting in May, compounding losses driven by fears that Trump’s tariffs could weaken global fuel demand.

The sell-off extended a rocky stretch for markets, with traders bracing for further turbulence as the new trade policies take effect.