Stock market plunges amid global sell-off following Trump’s new tariff announcement

WASHINGTON - U.S. stocks experienced sharp declines Thursday as markets reacted to President Donald Trump’s newly unveiled tariff plan.

Dow drops 1,150 points amid global market sell-off

What we know:

The Dow Jones Industrial Average dropped 1,150 points in early trading, marking one of the steepest losses in recent years. The S&P 500 fell 3.3%, while the Nasdaq Composite tumbled 4.3%.

The expansive tariff policy, a fulfillment of a campaign promise, introduces a base 10% tariff on all imported goods, with higher rates targeting specific countries, said FOX 5's Melanie Alnwick. Products from the European Union face a 20% import tax, while tariffs on goods from Vietnam and China reach 46% and 54%. The auto industry is particularly affected, with a 25% tariff on vehicle imports and additional taxes on car parts.

Economists warn that these tariffs will impact all sectors of the economy, including consumer goods like clothing, food, and electronics, with companies likely passing costs onto consumers. The National Association of Manufacturers expressed concern, stating, "The high costs of new tariffs threaten investment, jobs, and supply chains."

Stock market plunges amid global sell-off following Trump’s new tariff announcement

Trump tariffs trigger economic concerns across multiple sectors

The Senate passed a bill,, led by Virginia Democrat Tim Kaine, to repeal tariffs on Canadian imports, signaling opposition. However, the measure is unlikely to pass the House.

President Trump defended the tariffs, claiming they will generate $600 billion annually for the U.S. Treasury and bring manufacturing jobs back to the United States. Critics argue that factories take time to build, and the immediate economic impact could strain consumers’ wallets.

As global markets react, some countries are calling for new trade negotiations to address the escalating tensions.