President Donald Trump's Tariff Measures Spark Stock Market Drop
US President Donald Trump's announcement of new tariffs led to a sharp drop in the stock market, despite his positive assessment of the situation.
US President Donald Trump offered a rosy assessment of the aftermath of his sweeping tariff announcement, even as the stock market dropped sharply on Thursday over the move. The Dow Jones Industrial Average dropped more than 1,600 points a day after Trump announced the measures. US stocks led a worldwide selloff following the Republican President's announcement of tariffs against much of the world, sparking a shock like none seen since the COVID-19 pandemic.
Trump compared the United States to a sick patient in need of surgery, stating that the markets, stock, and country would boom as a result of the tariffs. He announced a minimum tariff of 10 percent on imports, with higher rates for products from certain countries like China and the European Union. The announcement jolted markets worldwide, but Trump said that was to be expected. He emphasized the influx of investment coming into the country and indicated openness to using tariffs in negotiations with other countries.
Trump levied reciprocal tariffs ranging from 10 percent to 49 percent against various countries, dubbing the announcement 'Liberation Day'. He stated that the tariff money would be used to reduce the US debt. However, despite Trump's positive outlook, the stock market experienced a significant drop following the tariff announcement.