US stock markets suffered a sharp decline on Thursday after President Donald Trump announced steep tariffs on imports, sparking fears of a recession in the US and around the world.
When the markets opened, Wall Street charts were painted red. For every stock that gained, ten others were falling. Tech giants like Apple and big retail chains like Walmart and Nike were hit hard, as investors spooked by rising costs for entire industries.
The value of US stocks has lost trillions of dollars, directly hitting ordinary citizens' retirement savings, including their accounts. Trade experts also predict a rise in prices for consumers, as large companies will pass on the additional costs to buyers.
The S&P 500 fell 3.12 percent at the open, the Nasdaq lost 4.16 percent, and the Dow Jones fell 2.63 percent. The S&P is experiencing its worst day in two years, while hope remains that the markets will recover in the coming days and weeks.
Import-dependent companies suffered the biggest losses as they will be hit by new tariffs of up to 54% on cheap goods from Asia. Nike fell 12%, while Apple fell 8%.
Investment expert Chris Zaccarelli of Northlight Asset Management said investors are reacting with panic.
"The hope is that these tariffs are just a starting point for negotiations and eventually tariff rates will be reduced. But for now, traders are acting without thinking twice," he stressed.
Meanwhile, Commerce Secretary Howard Lutnick confirmed that there will be no exemptions for any country from the new US tariffs. He also warned that other countries would be wrong to retaliate with tariffs against the US.
Trump announced the tariffs Wednesday in the White House Rose Garden, imposing a base tariff of 10% on all imports. For China, the tariff amounts to 34% on top of an existing 20%. The European Union will face a 20% tariff, while South Korea will face 25%. Japan, Taiwan and other countries will also face high tariffs.
Immediately after the announcement, stock markets outside the US fell sharply. Japan's Nikkei index lost more than 3%, South Korea's Kospi fell 1.5%, while Australia's main index lost 1.9%, marking the biggest single-day drop since September.
Trump accused foreign countries of "looting" the United States. He said the tariffs are intended to stop "theft" and bring jobs back to American factories. However, economists warn of an economic slowdown and rising prices for consumer goods.
"American taxpayers have been taken advantage of for over 50 years, but this will not happen again," Trump said.
He described the global trading system as unfairly played against the US, accusing foreign countries of " plundering, raping and destroying " the American economy.
Although he promised to bring back jobs to the US, many analysts fear that his policies could cause a sudden increase in prices for cars, clothing and other goods, negatively affecting the daily lives of Americans. (A2 Televizion)
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