Wall Street slides as tariff fears mount
U.S. markets experienced a significant decline as concerns over President Trump's impending reciprocal tariffs and weakening economic indicators prompted a shift towards bonds and gold.
Published on April 2, 2025
On Tuesday, U.S. stock indexes fell amid concerns over impending tariff announcements and weak economic data. U.S. manufacturing contracted, and factory gate inflation hit a near three-year high, while job openings decreased. Investors moved toward bonds and gold as uncertainties pushed markets into a defensive stance.
President Trump is expected to announce reciprocal tariffs on April 2, potentially imposing around 20% tariffs on most imports. This announcement, combined with pre-announcement jitters noted on various fronts—including falling equity prices and declining manufacturing indices—led to significant losses on Wall Street, with the S&P 500 and Dow Jones recording their worst quarterly declines since mid-2022. Single-stock movements also reflected mixed market reactions under the pressure of trade policy uncertainties.