People react in horror after watching Trump's tariffs wipe $2,000,000,000,000 from the stock market in 25 seconds
Individuals stare in astonishment as President Trump's tax hikes cause markets to lose $2 trillion in just 25 seconds. The fresh tariffs received negative reactions from global nations and American citizens alike. The new rates imposed on international goods have stunned many global authorities, and the European Union has indicated plans for counter-measures against them.
During his announcement at the White House Rose Garden on April 2, Trump labeled it as 'Liberation Day.' He revealed that these taxes would affect not only trading allies but countries worldwide, aiming to reduce American reliance on foreign products.
China, Mexico, Canada, and the European Union stand at the forefront of this commercial dispute after Trump increased taxes by 25 percent on numerous imports. The President signed an order with what many call 'catastrophic' tariffs, and financial markets now show the consequences.
Americans watched global stocks drop dramatically while the US dollar fell to a six-month low following these extensive trade taxes. The S&P 500 shed $2 trillion in value as Trump revealed widespread reciprocal tariffs targeting up to 60 nations.
In approximately 25 seconds, European markets opened lower following sharp declines across Asia and US futures. These futures started dropping during Trump's address and vanished just 20 minutes later.
The FTSE 100 in London decreased by 1.3 percent, Germany's Dax fell 1.6 percent, and France's CAC40 dropped 1.8 percent. Japan's Nikkei and Topix fell 3.3 percent and 3.5 percent respectively after receiving a 24 percent tariff. Hong Kong's Hang Seng reduced by 1.9 percent, while Vietnam's market plummeted 6.7 percent facing 50 percent tariffs.
US indicators showed Dow futures losing 2.1 percent and S&P 500 futures dropping 3 percent during this period. Nasdaq futures decreased 3.5 percent, with Apple falling 7 percent, Nike 7.3 percent, and Nvidia 5.6 percent. Tesla shares dropped 8 percent in the aftermath.
Online reactions showed public distress about this decline, with one social media user writing: "Not to alarm everyone too much but the U.S.
stock market HAS LOST OVER 2 TRILLION in THE LAST TWENTY MINUTES." Another person commented: "The stock market is crashing because Trump is an unintelligent waste who faced bankruptcy 6 times and aims to make America #7." One Reddit user remarked: "Well well who could've predicted this?? Literally everyone."
Alarmingly, the dollar fell 1.1 percent against other currencies, creating a disappointing situation for the US and potential dollar investors.
Adam Hetts, portfolio manager at Janus Henderson Investors, suggests the situation will likely remain difficult. He told The Guardian: "Eye-watering tariffs on a country-by-country basis scream 'negotiation tactic', which will keep markets on edge for the foreseeable future. Fortunately, this means there's substantial room for lower tariffs from here, albeit with a 10% baseline in place."
"We've seen the administration have a surprisingly high tolerance for market pain, now the big question is how much tolerance it has for true economic pain as negotiations unfold," he added.
This dramatic event has pushed investors toward safer investment options, particularly gold, which reached a record high of $3,167.50 overnight.
