Wall Street Crashes in Global Market Meltdown as Trump Defends Tariffs: “It’s Going To Be Amazing”

The S&P 500 records its biggest drop since 2020, while Trump insists the economy is undergoing a necessary ‘operation’ and will ‘boom’ soon.

April 4, 2025 | New York – Wall Street plunged on Thursday in what is being called a global market bloodbath, triggered by President Donald Trump’s sweeping tariff announcement. The S&P 500 fell 4.8%, the Nasdaq tumbled 6%, and the Dow Jones lost 4% — marking the steepest single-day declines since the pandemic-hit markets of 2020.

Also Read: Wall Street Bleeds: Trump’s Tariff Tsunami Triggers Major Selloff in US and Indian IT Stocks

The plunge came a day after Trump introduced a 10% universal import duty on all trading partners and steeper reciprocal tariffs on 60 countries, including 34% on China, 24% on Japan, and 20% on the European Union. A separate 25% tariff on foreign-made cars also took effect, prompting Canada to respond with retaliatory tariffs and causing auto giant Stellantis to halt production at select Canadian and Mexican plants.

Also Read: Stock Market Highlights: Trump Tariff Exemptions Boost Pharma, But Nifty Ends Below 23,300

Yet, Trump remained defiant, comparing the economic shake-up to a medical procedure:

“The patient was very sick. The economy had a lot of problems… It’s going to be amazing,” he declared before leaving for his Florida golf resort.

While critics warn of global economic damage, Commerce Secretary Howard Lutnick defended the move, saying, “Let Donald Trump run the global economy. He knows what he’s doing.”

Also Read: Trump Tariffs Target Remote Penguin Island With No Human Inhabitants

Global Fallout and Rising Criticism

The tariffs have drawn backlash from China, France, Germany, and even from within Trump’s own party. French President Emmanuel Macron proposed suspending all investments in the US until the tariff policies are clarified, while China vowed countermeasures and demanded an immediate rollback.

IMF Chief Kristalina Georgieva warned the move risks derailing global growth:

“These tariffs represent a significant risk to the global outlook… it’s crucial to avoid further economic harm.”

Meanwhile, safe-haven assets like gold hit record highs, while crude oil prices fell and the US dollar weakened across global exchanges.

Senate Minority Leader Mitch McConnell broke ranks with the White House, calling the tariff policy “bad economics” and warning of price hikes and diplomatic fallout.

Still, Trump remained unwavering:

“You can’t really fight with the United States… We are the sumo wrestler of this world.”

As financial markets brace for further turbulence, the first phase of the universal tariff (10%) takes effect April 5, while the targeted reciprocal tariffs launch April 9.

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