April 2, 2025, became a pivotal day for global trade and financial markets when President Donald Trump unveiled an aggressive new tariff plan during a press conference in the White House Rose Garden at 4 p.m. ET. The sweeping policy introduced a 10% baseline tax on all imports into the U.S., along with significant additional tariffs targeting specific trading partners—54% on China (including existing tariffs), 20% on the European Union, 24% on Japan, and more. Find details here.
Although the announcement came after the closing bell, its impact was immediately felt in after-hours trading. Earlier in the day, Wall Street had been buoyant with cautious optimism. The S&P 500 gained 0.67% (37.90 points) to close at 5,670.97, while the Dow Jones Industrial Average rose 0.56% (235.36 points) to 42,225.32, and the Nasdaq Composite climbed 0.87% (151.16 points) to 17,601.05 (Yahoo Finance). Investors seemed hopeful that the administration’s tariff rhetoric would not translate into drastic action. However, following the announcement, market sentiment took a sharp downturn.
In after-hours trading, the reaction was swift and significant. Futures tied to the S&P 500 dropped 3% to 3.6%, according to Bloomberg, while SPDR S&P 500 ETF Trust saw a decline of 2.2%. Dow futures experienced a loss of 1,007 to 1,069 points—a 2.3% to 2.5% drop—while Nasdaq-100 futures fell even harder, plunging 4.2% to 4.5%, per CNBC.
Major U.S. companies also faced notable losses during after-hours trading. Multinational corporations like Nike and Apple both fell by approximately 7%, as reported by Reuters. The retail sector saw even steeper declines: Five Below sank 14%, Dollar Tree fell by 11%, and Gap slid 8.5%, reflecting their reliance on low-cost imported goods. Technology firms such as Nvidia and Tesla also faced downturns, dropping 5% and 7% respectively, as investors shifted away from riskier assets.
The tariffs, particularly the reciprocal rates targeting China and the EU, raised concerns about supply chain disruptions, rising inflation, and potential retaliatory measures from affected countries—issues that could weigh heavily on corporate profits and the broader economy. Analysts have warned of a volatile period ahead as the trade landscape faces fundamental shifts.
International markets were not spared. ETFs linked to economies such as India, Japan, China, and Vietnam recorded declines of 2.4% to 6.5% in after-hours trading, according to MarketWatch. This global ripple effect highlights the broader implications of the tariff policy, with significant challenges expected when markets reopen on April 3.
Though U.S. stocks closed higher before the announcement, optimism quickly gave way to uncertainty as investors processed the sweeping trade measures. The coming days will test the resilience of markets and shed light on the long-term consequences of the Trump administration’s tariff plan.
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