On April 3, 2025, following the introduction of new tariffs by the Trump administration, U.S. financial markets experienced a significant downturn, with Wall Street seeing a drop of approximately 5%.

The tariffs, which include a general 10% tax imposed on imports from all countries, have sparked widespread panic among investors, reminiscent of the economic turmoil witnessed on Black Thursday in 1929.

The new tariff measures were announced by President Trump, who quoted a simplified formula linking the trade deficit to exports, effectively suggesting a reduction in the deficit's impact on global trade.

Market reactions were immediate and pronounced, as the Asia-Pacific stock markets reflected a wave of pessimism that cascaded into Wall Street's opening.

In the early hours of trading, the NASDAQ composite index fell by 5.4%, the S&P 500 dropped around 4.4%, and the Dow Jones Industrial Average experienced a decrease of 3.7%.

The Russell 2000 index, which tracks small-cap companies in the U.S., plummeted by 4%.

This downturn led to massive sell-offs by investors, who responded to uncertainties surrounding the altered trade landscape.

Notable among the companies affected were sportswear brand Nike, which saw its stock price decrease by 13%.

Major technology companies, often referred to as the 'Magnificent Seven,' faced substantial declines as well, with Apple and Amazon both experiencing a nearly 9% drop, culminating in Apple losing over $280 billion in market capitalization.

Bank of America recorded a decrease of 10.3%.

These developments signify a stark shift in investor sentiment from the previously profitable phase dominantly characterized by these tech giants.

The financial strain is compounded by fears surrounding supply chain disruptions, potential inflationary pressures, and the risk of a recessive economic environment.

Investors withdrew significantly from the U.S. stock market, shifting perceptions of what was once considered a bastion of financial reliability.

The global response to the tariffs was swift and negative, with Asian markets feeling the immediate effects.

Specifically, China faced one of the most severe impacts, with an imposed general tariff of 34%, leading to significant declines in market performance.

The Hang Seng index in Hong Kong fell by 1.5%, while the Nikkei index in Japan, which includes major automobile manufacturers, dropped nearly 3%.

Vietnam, a critical player in global textile manufacturing, faced an even steeper tariff of 46%, which raised concerns about elevated consumer prices in the United States as these tariffs would likely be passed down.

As global markets brace for continued volatility, officials and industry leaders are monitoring developments closely.