From Yahoo Finance: 2025-04-03 11:48:00

No economist has ever suggested high tariffs grow the U.S. economy, yet Trump’s tariff tsunami caused Wall Street to drop 2.73%. Dow fell over 1400 points, signaling investor fear of recession and inflation due to higher costs on imports. Tariffs equal a hefty tax hike and analysts are lowering profit forecasts.

The stock market’s reaction to Trump’s tariffs led to a major sell-off on Wall Street, with stocks plummeting. The market data was delayed due to high activity, and analysts are expressing concerns about a potential economic slowdown and higher inflation. Tariffs could lead to a significant downturn in the economy, and investor sentiment has turned bearish.

Trump’s sweeping tariffs include a 20% tariff on the EU, 46% on Vietnam, and a 34% tariff on China, totaling over $600 billion. Analysts are shocked by the depth of the tariffs and predict a significant impact on the economy. The U.S. tariffs will reach a weighted-average rate of 25% or higher, potentially surpassing historical tariffs like the Smoot-Hawley Act.

Trump’s tariff blitz has sparked memes and comparisons to historical events like the Smoot-Hawley Tariff Act. The market is anxiously watching the impact of the tariffs on various industries, with fears of a recession looming. The lessons from history show that high tariffs can have detrimental effects on the economy, leading to caution and uncertainty among investors.

Read more: Trump tariffs tank stocks, 401(k)s, as investors digest economic policy shift