Trump tariffs send shockwaves through global markets

Wall Street just suffered its most brutal one-day loss since the early days of Covid. The spark? A sweeping, historic round of tariffs announced by US President Donald Trump late Wednesday, including a 10% baseline duty on all imports and much higher rates on key trading partners like China and the EU. Markets reeled. Investors dumped risky assets. And the economic damage stretched across continents.

In a single session, $2.4 trillion in US stock value evaporated. Global markets tumbled, with tech, banks, energy, and retailers bearing the brunt. Analysts warned of recession, inflation, and long-term uncertainty. “Markets may actually be underreacting,” said Sean Sun of Thornburg Investment Management. Here’s how the fallout looks — in 10 big, alarming numbers:
1. $2.4 trillion wiped out: The S&P 500 lost $2.4 trillion in value on Thursday — its worst single-day drop since March 2020. The index fell 4.84%, erasing weeks of gains in hours.

2. 1,679 points lost on the Dow: The Dow Jones Industrial Average plummeted 1,679 points, or 3.98%, marking its steepest one-day decline since June 2020.
3. Nasdaq down nearly 6%: The tech-heavy Nasdaq Composite cratered 5.97%, its worst day since the Covid crash. Apple led the plunge with a 9.2% loss, its biggest since 2019.

4. 70% tariff wall against China: Combined with older duties, the effective US tariff rate on Chinese goods now approaches 70%, according to Capital Economics. China vowed retaliation.
5. $3,800 annual hit to US households: The Yale Budget Lab estimates the 2025 tariff package will cost US households an average of $3,800 per year. Thursday’s “Liberation Day” tariffs alone add $2,100.

6. 6.6% drop in small caps: The Russell 2000, a benchmark for small US companies, fell 6.6%—its worst day since June 2020 — reflecting deep anxiety about domestic demand and supply chains.
7. 50% tariff on Lesotho: Even tiny, poor nations weren’t spared. Lesotho, with a per-capita GDP under $3,000, was hit with a 50% tariff — higher than China’s.
8. 17% jump in clothing prices: Import tariffs on Southeast Asian textiles are expected to push US clothing prices up 17%, Yale estimates. Retailers like Nike and Ralph Lauren fell 14.4% and 16.3%, respectively.
9. 4.04% yield on 10-Year Treasury: As investors fled to safety, the 10-year Treasury yield dropped from 4.20% to 4.04%, the lowest level since October 2024 — a signal of rising recession fears.
10. 22.5% average US tariff rate: Trump’s new tariffs bring the US average effective tariff rate to 22.5%—the highest since 1909, surpassing even Smoot-Hawley-era levels.

(With inputs from agencies)