Eight charts illustrating the economic effects of tariffs implemented during Trump’s presidency.
On April 2, 2025, President Donald Trump announced a sweeping 10 percent tariff on all imports, set to take effect on April 5. Additional tariffs, which vary by country, are scheduled to commence on April 9. This policy shift reverberated throughout the global economy, resulting in an unprecedented two-day loss in the U.S. stock market. Over Thursday and Friday, a staggering .6 trillion in market value evaporated before the markets closed for the weekend.
Despite a slight uptick on Tuesday, stocks plummeted again on Wednesday with the implementation of these tariffs, particularly a harsh 104 percent tariff on goods imported from China. This aggressive policy has raised concerns about the onset of a global trade war.
Following the tariff announcement, the White House listed 57 countries, territories, and trading blocs that will be affected by these increased tariffs, which include a flat 10 percent on imports from nearly all U.S. trading partners. Tariffs serve as taxes levied on imported goods and services, aimed at bolstering domestic industries. However, they often result in higher costs for consumers when purchasing foreign products.
The economic implications are significant. According to Bloomberg, the market losses over three days—Thursday, Friday, and the subsequent Monday—have decimated approximately trillion in global equity, accounting for around 10 percent of the world’s gross domestic product, an amount greater than the combined GDP of 150 nations. The S&P 500, a key index tracking the performance of the largest publicly traded companies in the United States, recorded its most substantial decline in four days since the benchmark was established in the 1950s.
As of April 8, the S&P 500 closed down 79.48 points at 4,982.77, while the Dow Jones Industrial Average and Nasdaq also faced losses, indicating a precarious situation nearing bear market territory.
The uncertainties affecting the market extended beyond stocks. Prices for gold, typically seen as a safe haven during turbulent times, initially soared after the tariff announcement but later saw a slight decrease. Conversely, oil prices plummeted significantly amid fears of reduced demand, largely influenced by potential economic downturns stemming from trade tensions.
Global currencies displayed mixed reactions, with the U.S. dollar dipping against major currencies. Notably, the Japanese yen appreciated as investors sought stability amid the volatility.
In the face of these developments, analysts predict a heightened risk of recession, with estimates pointing to a 60 percent likelihood from some financial institutions. The economic climate calls for close monitoring as stakeholders navigate the turmoil in hopes of finding a pathway to recovery.
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