Markets continue to crash following Trump “Liberation Day” Tarriffs

​On April 2, 2025, President Donald Trump announced a series of tariffs known as the “Liberation Day” tariffs, aiming to address what he described as unfair trade practices contributing to the United States’ trade deficits. The policy introduced a two-tier tariff structure:

Universal Baseline Tariff: A 10% tariff imposed on all imports from countries that maintain any tariffs on U.S. goods. This measure was intended to encourage other nations to eliminate their tariffs on American products.

Country-Specific Tariffs: Higher tariffs targeting specific countries based on trade deficits and other factors. For example:​Business Insider

• China faces an additional 34% tariff, totaling 54% on its exports to the U.S.
  
• Vietnam is subject to a 46% tariff.​
  
• The European Union faces a 20% tariff.
  
• Japan is subject to a 24% tariff.
  
• Other nations, including Thailand, Taiwan, and India, face tariffs ranging between 26% and 36%.
  

Automobile Imports: An additional 25% tariff on imported cars.

The administration asserts that these tariffs are designed to encourage domestic manufacturing and rectify unfair trade practices. However, the announcement has elicited significant domestic and international criticism.

inancial markets responded negatively, with major indices experiencing significant declines. The Dow Jones Industrial Average fell nearly 4%, the S&P 500 dropped 4.8%, and the Nasdaq declined almost 6%.

Economists expressed concern that these tariffs could lead to a global economic downturn, with sustained high tariffs potentially pushing multiple economies into recession.