Dow plunges 2,000 points after China retaliates against Trump’s tariffs edition.cnn.com

On April 4, 2025, U.S. stock markets experienced a significant downturn following China’s announcement of a 34% tariff on all U.S. imports, a direct response to President Donald Trump’s “Liberation Day” tariffs imposing a universal 10% tax on imports. The Dow Jones Industrial Average plummeted over 2,000 points, marking one of the steepest declines since 2020. The S&P 500 and Nasdaq Composite also saw substantial losses, each dropping over 5%. Investors are increasingly concerned that escalating trade tensions could propel the U.S. and global economies into recession. Despite these market upheavals, President Trump remains steadfast in his tariff strategy, asserting that these measures are essential to rectify longstanding trade imbalances.