Stocks are in rally mode after the President said he doesn't intend to remove the Fed Chair. He also anticipates substantially lower tariffs on China. @KristenScholer explains in the Market Update. pic.twitter.com/6H4melw0Nt
— NYSE 🏛 (@NYSE) April 23, 2025
US stocks plunged on Thursday as the White House announced that tariffs on Chinese goods would total 145%, higher than the previously stated 125%. The Dow Jones Industrial Average fell about 1,000 points, a 2.5% decline. The S&P 500 dropped nearly 3.5%, and the tech-heavy Nasdaq Composite tumbled 4.3%.
#MarketAlert | Nifty gains 4.3% since Trump's April 2 tariff announcements
Who were the top gainers and losers in the index? Take a look👇 #Nifty #StockMarket #TrumpTariffs pic.twitter.com/YMMfOOAamc
— ET NOW (@ETNOWlive) April 24, 2025
The market’s downturn deepened after the tariff announcement, renewing concerns about the impact of President Trump’s escalating trade war with China. Rabobank analysts noted, “The trade war is now turning into a direct confrontation between the US and China. We could be seeing escalation and de-escalation simultaneously, pulling markets in different directions.”
Stocks To Watch | 📊Ready, set, trade! Keep an eye on these stocks as they set the market abuzz #StockMarket #TrumpTarrifs pic.twitter.com/Js3aM4Fuq0
— ET NOW (@ETNOWlive) April 24, 2025
Other parts of the president’s trade policy overhaul remain in effect, including a baseline 10% tariff on most trading partners and 25% duties on steel and aluminum imports.
Analysts warn these measures could lead to rising prices and slower economic growth. Trump’s sudden tariff adjustments followed a sharp and unexpected surge in long-term Treasury yields earlier this week. On Wednesday, the 10-year Treasury yield traded at 4.47%, marking the largest three-day jump since December 2001.
Market reactions to tariff news
This surge seemed to force the president’s hand on tariffs. “The bond market is very tricky.
I was watching it,” Trump admitted to reporters. “People were getting a little queasy.”
The overall estimates for the US effective tariff rate have risen, with some analysts predicting the rate is now 27%, up from 22.5% after Trump’s “Liberation Day” tariff announcements. Big Tech stocks, which had been leaders during times of market rally, faced significant declines.
Nvidia shares fell over 7%, and Tesla dropped about 10%. Other tech giants like Apple, Amazon, and Microsoft also saw substantial declines. The construction industry is facing challenges as well, with Wells Fargo warning that the new and lingering tariffs could drive up costs for key building materials such as steel, aluminum, lumber, and copper.
This is expected to further strain residential construction and housing affordability. The market’s reactions to these ongoing trade battles highlight the unpredictable nature of the current economic climate, driven largely by geopolitical strategies and their resulting economic policies.