Global financial markets plummeted Thursday as President Donald Trump's sweeping new tariff plan sent shockwaves through the international trading system, with the S&P 500 falling over 3.5% and the Nasdaq dropping nearly 4% in early trading.

The sell-off came in response to Trump's 'Liberation Day' announcement implementing a baseline 10% tariff on all imports starting April 5, with additional targeted duties of up to 46% on specific countries beginning April 9 [1][2].

Key aspects of the tariff plan include:

A universal 10% tariff on all importsAdditional country-specific tariffs, including 34% on China, 20% on EU nations, and 46% on VietnamA separate 25% tariff on imported vehicles and auto parts, effective immediately

Major tech stocks bore the brunt of the decline, with Apple shares dropping over 8% amid concerns about its exposure to Asian manufacturing [1][2]. Other tech giants including Amazon (-6%), Meta (-6%), and Nvidia (-5%) also saw significant losses.

Economists warn the tariffs could have far-reaching consequences. Goldman Sachs has already lowered its 2025 U.S. GDP growth forecast to 1.7% from 2.2% [4]. The overall U.S. tariff rate is expected to jump from 2.5% to approximately 22%, reaching levels not seen in over a century [8].

'This is a game changer, not only for the U.S. economy but for the global economy,' said Olu Sonola, head of U.S. economic research at Fitch Ratings. 'Many countries will likely end up in a recession.' [8]

International reaction has been swift and negative. The European Union is preparing countermeasures, while China has promised 'resolute' retaliation [8]. Canadian Prime Minister Mark Carney warned his country 'will fight back - with purpose and with force.' [3]

Economists project significant consumer impact, with lower-income households potentially seeing their disposable income drop by up to 5.5% ($2,365) compared to 1.9% for higher-income households [9]. Auto prices could rise between $2,000 and $15,000 per vehicle, according to various estimates [4].