As Donald Trump‘s tariffs showed increasing signs of escalating a trade war with China and perhaps several other nations, U.S. stock markets fell sharply for a second straight day.
The Dow Jones Industrial Average fell 1,300 points and the S&P 500 and Nasdaq each declined by almost 4% in early trading Friday. The drop followed a Thursday market session that was the worst since the Covid panic of 2020 for the Nasdaq and S&P. Individual shares of large companies were hammered to an unusual extent as investors reacted to sweeping and higher-than-expected tariffs.
Losses weren’t quite as dire as on Thursday for media and tech stocks, but the morning still signaled a glum end to a turbulent week. Apple shed 3%, Meta was off 4%, Disney fell 4% and Warner Bros. Discovery was off by 7%. Amazon slipped just 1%, while Netflix tumbled 5%.
China indicated that it would impose a 34% tariff on U.S. goods, matching the newest 34% one slapped on China by Trump. China’s defiant stance has sparked fears that countries will retaliate rather than negotiating with the U.S.
Trump unveiled the tariffs Wednesday in a meandering White House Rose Garden news conference. Futures markets began sinking as he was talking. A baseline 10% reciprocal tariff was put in place on all trading partners, with varying country-specific rates. China, India, Taiwan, Thailand, and Vietnam are slated to be hit with tariffs of 34%, 26%, 32%, 36%, and 46%, respectively. The European Union also faces a 20% tariff. The measures will take effect in stages over the next week.
One of the odder sights on the board Friday was the green number for Newsmax, which stood out in a sea of red. The pro-Trump TV news network, which had its IPO earlier this week, rose 5% and has shot up more than 500% since going public. Rudy Giuliani, the disgraced former Trump lawyer and ex-New York City mayor, was on hand Thursday to help ring the opening bell at the New York Stock Exchange along with other Newsmax backers.
