U.S. stocks tumbled at the open Thursday, with major indexes dropping as much as 4.5%, after President Trump’s sweeping new tariff plan was deeper and more aggressive than expected.
The impact reverberated through global markets. The dollar tumbled to its lowest level of the year. Popular stocks such as Apple, Amazon and Nike dropped anew in early trading Thursday, with Nike dropping 11% and the others declining in high single digits.
The turmoil has spread broadly, with oil prices dropping more than 6% and investors selling gold after its sharp run over the past year to fresh records. But so far, traders said, selling has been orderly and though the scale of U.S. tariffs came as a shock, few investors are surprised to see stocks pull back following their gains over the past two years.
The sour open sets up financial markets for one of their most eventful days in recent years. Despite the 2025 retreat in major indexes, investors have remained generally sanguine this year about the prospects for global growth and the opportunities that the U.S. markets and economy can offer to those around the world. But the tariffs and the international reaction will test that faith, and Thursday’s action may be a gauge of the extent to which that outlook is changing.
Here’s what to know:
U.S. stock markets were lower. The U.S. dollar sank more than 2% against the euro, Japanese yen and Swiss franc. Oil and gold both fell and investors dashed for the safety of Treasurys, a response to fears that the tariffs will tip the economy toward recession.
All U.S. imports will be subject to a 10% tariff, effective April 5.
Trump will impose even higher rates on some nations that the White House considers bad actors on trade. For example, Japan faces a 24% duty and the European Union faces a 20% levy, effective April 9.
China will be hit with a new 34% tariff, adding to previous duties, like the 20% tariff Trump imposed over fentanyl. That means the base tariff rate on Chinese imports will be 54%, before adding pre-existing levies.
The tariffs are pegged to amounts Trump says other countries impose on the U.S. Here’s the math behind the levies.
Some global leaders are vowing to retaliate, while others are hopeful there is still time to strike a deal with the U.S.
Canada and Mexico are excluded from the reciprocal tariff regime. They are still subject to plans to impose 25% tariffs on most imports to the U.S., though the administration has given an exemption for autos and many other goods. Here’s a list of the products and countries exempted from the tariffs.
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