President Donald Trump announced sweeping tariffs on various US trade partners, causing US stocks to plummet in after-hours trading. Dow futures fell more than 950 points, or 2.32%, while S&P 500 futures dropped 3.40%, and Nasdaq 100 futures sank 4.22%. The tariffs range from 10% to 49% on all imported goods and include a 25% tariff on all foreign automakers set to take effect at midnight.
World leaders responded with a mix of confusion and tempered concern. Four Senate Republicans joined Democrats in passing a resolution aimed at preventing the president from imposing tariffs on Canada, highlighting opposition within Trump’s party. Despite the new 10% tariff on goods from the United Kingdom, British leaders stated that the relationship with the United States remains strong and are working to negotiate a trade deal to mitigate the impact.
Trump imposes tariffs, stocks drop
Former Vice President Mike Pence criticized the tariffs, labeling them as the largest peacetime tax hike in US history and estimating that American families could see increased costs of over $3,500 per year. Union leaders expressed cautious support for strategic tariffs but emphasized the need for policies that support workers’ rights in the US.
AFL-CIO President Liz Shuler criticized the administration’s broader attacks on trade unions and outsourcing of US jobs. Economist Omair Sharif noted that the “reciprocal tariffs” could raise the average US tariff rate to 25% from the current rate of about 3%, surpassing the 20% tariff rate imposed by the Smoot-Hawley Tariff Act of 1930, which worsened the Great Depression. In a statement, Trump declared a national economic emergency in response to the US trade deficit, citing conditions such as a lack of reciprocity in bilateral trade relationships and economic policies of trade partners as key factors threatening national security and the economy.
Countries like Cuba, Belarus, North Korea, and Russia were exempted from the new tariffs due to existing high tariffs and sanctions, according to an unnamed White House official.
