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U.S. stocks plunged in after-hours dealings Wednesday, as President Trump announced sweeping new tariffs on imported goods from a range of countries.
The SPDR S&P 500 ETF (SPY) declined more than 2% Wednesday afternoon, while the SPDR Dow Jones Industrial Average ETF (DIA) fell 1% and the Invesco QQQ Trust (QQQ), which tracks the Nasdaq 100, dropped as much as 3%.
Trump announced on Wednesday that the U.S. will implement a minimum tariff of 10% on nearly all countries. He also announced tariffs for 60 countries, which are equivalent to the half of what the administration claims they impose on U.S. products in the form “tariffs” and “non-monetary barriers.” The tariffs will apply to all of America’s major trading partners. This includes a 20% rate applied to imports coming from the European Union and Japan, as well as a 26% for imports coming from China.
Apple (AAPL) shares, which have a significant manufacturing presence in China and Vietnam, as well as India, were down 6% late in the trading session. Tesla (TSLA), a manufacturer of electric vehicles, fell about 4%. Retail giants Amazon (AMZN), and Walmart (WMT), also declined about 5% to 6%.
Apparel and shoe manufacturers were amongst the worst-hit stocks. The reciprocal tariffs targeted a wide range of countries that manufacture most textiles bound for the United States. Nike (NKE), a shoemaker in Switzerland, saw its shares plummet 17% and Nike (NKE), 7%. Lululemon, a Canadian company, was down by more than 11%. Deckers Outdoor (DECK), based in the United States, fell nearly 12%.
Treasury yields fell amid fears that tariffs could slow U.S. economic growth and even strain the economy. The 10-year Treasury yield fell to 4.13% – near its lowest level of the year.
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