Markets react to Trump tariffs- April 2025
This has been the face of many traders over the past couple of days on Wall Street, and across the world. On April 2, 2025, President Trump unveiled his highly anticipated reciprocal tariffs on foreign imports, with all nations facing a minimum 10% tariffs on all goods they export to the US. Some countries, such as China, Vietnam, Indonesia, Canada, Mexico, and Cambodia have faced higher tariffs. For example, a 46% tariff was placed on Vietnamese imports. President Trump deemed April 2nd, "Liberation Day," claiming that the US had been ripped off by other nations through trade for decades, and that the US was finally "free" from trade imbalances and from getting "cheated" by other nations. However, global markets reaction to the tariffs was not one of excitement and promise, but of fear and distress. From April 3rd to April 4th, global markets saw a sharp decline, with all major US indexes in correction territory, especially the Russell 2000 Index in a b...