Wall Street Tumbles After Trump Tariffs Shock Markets: Apple, Tesla, Amazon Among Hardest Hit
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Wall Street Tumbles After Trump Tariffs Shock Markets |
Markets Recoil as Trump Imposes Sweeping Tariffs
U.S. stock futures plunged late Wednesday after President Donald Trump announced aggressive new tariffs on imports, igniting fears of a full-blown global trade war. The policy, unveiled at a press conference in Washington, sent shockwaves through global markets and triggered one of the steepest after-hours selloffs in years.
The new policy—branded “America First Tariff Reform”—includes a baseline 10% tariffon all imports, with significantly higher rates on goods from key U.S. trading partners. China faces a staggering 34%, Japan 24%, and the European Union 20%. The announcement upended investor expectations and caused an immediate reaction on Wall Street.
Read more: Trump’s Reciprocal Tariffs: Full List of Affected Countries
Dow Futures Plunge Over 1,000 Points
The response was swift and brutal:
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Dow Jones Industrial Average futures dropped over 1,100 points, a 2.7% plunge.
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S&P 500 futures sank 3.9%.
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Nasdaq 100 futures cratered 4.7%, reflecting the tech sector’s exposure to global supply chains.
The sell-off began minutes after Trump concluded his remarks, where he unveiled a chart detailing tariff rates by region. What was expected to be a moderate announcement turned into a full-scale escalation, sparking fears of retaliatory moves from other major economies.
Tech Giants Hit Hard: Apple, Tesla, Amazon Lead Losses
The tech sector bore the brunt of the carnage:
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Apple Inc. (AAPL) fell more than 7% in after-hours trading, due to its deep manufacturing ties to China.
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Tesla Inc. (TSLA) slid over 6%, as investors worried about the company’s reliance on imported parts.
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Amazon.com Inc. (AMZN) declined 5.4%, with analysts citing increased shipping and fulfillment costs.
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Nike (NKE) and Walmart (WMT) dropped 7% and 6% respectively, reflecting broader retail sector fears.
“These are worse-than-worst-case-scenario tariffs,” said Dan Ives, Senior Analyst at Wedbush Securities. “Markets had braced for a punch—but this was a knockout.”
Analysts Sound the Alarm: “This Is Economic Sabotage”
Investor sentiment quickly turned from cautious to panicked. Jed Ellerbroek, Portfolio Manager at Argent Capital, called the tariffs "far more aggressive than anything markets priced in.”
“This isn’t just about trade—this is about breaking global supply chains that have taken decades to build,” Ellerbroek said. “Painful times are ahead.”
JoAnne Bianco, Chief Investment Strategist at BondBloxx, warned of cascading consequences: “This move will stoke inflation, slow growth, and increase uncertainty—especially in tech, manufacturing, and retail.”
Treasury Response: “A Mag 7 Problem, Not a MAGA Problem”
Despite the market turmoil, the Trump administration appeared unphased. In a controversial comment, Treasury Secretary Scott Bessent told Bloomberg: “This is a Mag 7 problem, not a MAGA problem,” referring to the so-called “Magnificent Seven” of tech stocks—Apple, Amazon, Meta, Microsoft, Google, Tesla, and Nvidia.
The comment only added fuel to the fire, drawing backlash from investors who argue the administration is underestimating the fallout.
What’s Next? Uncertainty Reigns
Economists are now adjusting their forecasts. Most expect:
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Slower GDP growth in Q2 and Q3 2025.
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Rising consumer prices due to more expensive imports.
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Higher market volatility, especially in sectors with international exposure.
“The best-case scenario is this is a starting point for negotiations,” said Chris Zaccarelli, CIO at Northlight Asset Management. “The worst-case is a prolonged economic standoff that drags down global markets.”
Conclusion: A Defining Moment for Global Markets
Trump's tariff announcement has redefined the market outlook for 2025. With investors rattled, stocks falling, and economic risks rising, Wall Street is bracing for a prolonged period of uncertainty. As the dust settles, all eyes will be on international response—and whether the White House signals any room for compromise.