President Donald Trump said ‘it’s going very well’ after his sweeping new tariffs wiped nearly $2trillion off the US stock market and set off fears of a recession.
Roughly $1.7trillion disappeared from the S&P 500 Index as markets opened on Thursday the morning after Trump announced reciprocal tariffs on trading partners and at least 10% tariffs on imports from all countries.
Companies that rely heavily on overseas manufacturing saw the steepest falls in shares, with Apple Inc which relies on China dropping 9.5%. Apple had roughly $275billion in market value vanish and suffered the most among the Magnificent Seven stocks that include Amazon, Tesla, Microsoft, Meta Platforms, Alphabet and Nvidia.
Clothing company Lululemon Athletica Inc and shoe brand Nike Inc, which manufacture much of their products in Vietnam, both saw dips of 12%.
Discount retailer chains Target Corp and Dollar Tree Inc, which receive products from overseas, were down more than 10%.
Over 80% of S&P 500 companies were trading lower shortly before 10.30am in New York. The index appeared to be heading for its lowest point since 2022.
US stocks took the hardest hit by far as the S&P 500 tumbled about 4%. Stoxx Europe 600 fell 2.6% and Asia stocks as a whole declined less than 1%.
Despite the losses, Trump showed no sign of backing down from his new tariffs policy.
‘I think it’s going very well,’ he said when questioned about the stock market while departing the White House for Florida on Thursday afternoon.
‘It was an operation, like when a patient gets operated on and it’s a big thing.’
Trump said that six to seven trillion dollars of investments are on their way into the US and ‘we’ve never seen anything like it’.
‘The markets are going to boom, the stock is going to boom, the country is going to boom,’ he said.
‘And the rest of the world wants to see is there any way we can make a deal.’
The US president reiterated that trading partners have taken advantage of America for years and that soon his tariffs policy will bring ‘unbelievable’ results.
‘You’ll see how it’s going to turn out,’ he said.
‘Our country is going to boom.’
Earlier on Thursday, Trump had written on his Truth Social platform on Thursday morning: ‘THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING. THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!!!’
Trump billed April 2, 2025, ‘Liberation Day’ and pledged to rid the US of reliance on other countries for products in supplies, and arguably the pinnacle of his ongoing trade war.
Ahead of his announcement on Wednesday, questions remained over what countries would be hit with tariffs – and which ones would be spared.
Trump told reporters on Tuesday he would begin the tariffs with ‘all countries’, and said there ‘isn’t a cutoff’.
National Economic Council Director Kevin Hassett had neglected to name the countries involved in today’s expected tariffs, but the Office of the US Trade Representative provided more than a dozen nations they are ‘particularly interested’ in.
Metro outlined each country mentioned by the US Trade Representative, and why they could be on the list for ‘Liberation Day’.
United Kingdom
Prime Minister Keir Starmer has admitted it is likely the UK won’t be spared from the tariffs.
Part of the reason Trump’s tariff threats are concerning figures in the British government so much is because of the uncertainty around them.
We already know a 25% tariff will be introduced on all cars being imported to the US, a move that will hammer the British automotive industry.
But there’s a conspicuous lack of detail on the broader round that has been promised. Speculation suggests Trump may choose to respond to the rate of VAT by imposing import taxes of 20% on the UK.
If that happens, business will suddenly get a lot more expensive for many British firms, and that will mean further price rises for customers.
Argentina
The US and Argentina have a bilateral trade market worth an estimated £10 to £12 billion in the last year alone.
Argentina is a large producer of lithium and energy, as well as grains – but they’ve also become a close trade partner with China, which could be why they’re listed by the US Trade Representative as a country of interest.
It’s worth noting Trump is close to President Javier Milei – Elon Musk even danced with Milei on stage with a chainsaw.
Australia
Australian trade with the United States reached an estimated £39 billion in 2024.
The folks down under might be in a bit of trouble if hit with Trump’s tariffs – but why?
The US is in a trade surplus with Australia, meaning they are exporting more goods to the Aussies than receiving in return, according to the ABC.
Canada
One of the reasons Canada is on the list is what Trump calls their ‘anti-American farmer tariff’ on dairy products.
Trump has also declared a ‘Fentanyl Crisis’ as a reason for his declaration of emergency on the Canadian border – later citing it as another reason for the tariffs.
China
Tariffs against China are being used to ‘stop migrants and drugs’ from reaching the US.
But China is one of the United States’ largest trading partners – with trade last year between the pair reaching £450.3 billion.
European Union
‘Let me be clear: Europe did not start this confrontation, we think it is wrong,’ European Union executive head Ursula von der Leyen said today.
‘But my message to you today is that we have everything we need to protect our people and our prosperity.’
One of the tariffs Trump issued was a 25% tariff on cars and vehicle parts in the European Union. An estimated 14 million people work in the auto industry in Europe, according to Reuters.
Trump’s reasoning? The EU is ‘ripping off’ the US.
India
US Commerce Secretary Howard Lutnick previously asked why India wouldn’t ‘buy even a single bushel of American corn’.
The US has tried for years to access India’s agricultural sector, but India has protected it.
Now, the US wants more experts from India to narrow the trade deficit – receiving more wheat, cotton, corn and maize from the nation.
Washington is likely considering tariffs against India to pressure them into giving more agricultural products to the USA.
Indonesia
Indonesia and the US have a trade market worth £29.6 billion each year – mainly consisting of Indonesian imports of palm oil, broadcasting equipment and electrical machinery.
It’s not known why Indonesia is a ‘country of interest’ – the country hasn’t specifically been cited by officials in recent months, except on the list of ‘interesting’ countries.
Japan
The auto industry is the main point of why Japan could face tariffs from America.
Trump has repeatedly touted how he wants ‘American-made’ products in the US, and the auto industry plays a large part in that reasoning.
But last year, the US exported only £61.8 billion to Japan, whereas Japan imported £114.4 of goods to the US.
Japan is America’s largest ally in Asia.
Korea
Yet again, the auto industry is the main point of why Korea could also face tariffs from America.
Last year, the US exported only £50.6 billion to Korea – but Korea sent £101.7 billion to the US in goods.
Malaysia
Malaysia is another US ally in Asia bracing for issues with US tariffs today.
Tariffs could affect Malaysia’s automobile industry, as well as metals, semiconductors, and pharmaceuticals – all major exports.
‘Malaysia is the third-largest Asian supplier of electrical goods to America, and any tariff shot here would ripple deep,’ SPI Asset Management managing partner Stephen Innes told the Business Times.
Mexico
Tariffs are likely being put on Mexico due to Trump’s issue with drug trafficking over the border.
Mexico is a major trade partner with the US. Last year, the US exported £258 billion worth of goods, whereas Mexico sent £391.1 billion.
Saudi Arabia
The trade between the US and Saudi Arabia totalled £20 billion last year.
It’s unclear why Saudi has been mentioned in tariff talks – but their largest exports are mainly oil-based.
It’s worth noting that in his inauguration speech, Trump promised to ‘drill, baby, drill’.
South Africa
The auto industry is a major source of revenue for South Africa and this could be why it was mentioned in the list of ‘interesting’ countries.
South Africa exports billions worth of automobile parts to the United States each year, and could suffer if they are placed under the 25% automobile import tariff suggested by Trump.
Taiwan
This morning, Taiwan President Lai Ching-te said the country is ‘indispensable’ in the global supply chain.
Taiwan has billions of pounds in trade surplus with the US, which is why it’s likely in America’s target of tariffs.
Thailand
Thailand exports large amounts of machines, rubber plastics and food to the United States.
But last year, Thailand’s trade surplus with the USA reached £34.7 last year – which is likely why they’re also a country facing tariffs.
Turkey
Turkey isn’t in a trade surplus with the US – but rather, the US has imported more goods from Turkey than it exported last year.
But Turkey might avoid some tariffs this round, considering President Recep Erdoğan and Trump have a somewhat close relationship.
Vietnam
Vietnam is ‘particularly’ vulnerable to Trump’s tariffs, the BBC reported.
Trump previously slammed the country as ‘vulnerable to China’ and ‘almost the single worst abuser of anybody’.
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