S&P 500 down 5%, Dow Plunges 1,656 Points After China Tariffs/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ Markets worldwide plummeted Friday after China retaliated with sweeping tariffs against U.S. goods. The S&P 500 was down 5% in morning trading, coming off its worst day since COVID wrecked the global economy in 2020. The Dow Jones Industrial Average was down 1,656 points, or 4.2%, and the Nasdaq composite was 5.5% lower. European stocks saw some of the day’s biggest losses, with indexes sinking roughly 5%. The price of crude oil tumbled to its lowest level since 2021. Other basic building blocks for economic growth, such as copper, also saw prices slide on worries the trade war will weaken the global economy.

Dow Plunges 1,656 Points After China Tariffs – Quick Looks
- China imposes 34% tariffs on all U.S. goods, matching Trump’s latest tariff hike
- Dow falls over 1,656 points, S&P 500 and Nasdaq drop nearly 5.5%
- U.S. job report beats expectations, but fails to calm investors
- Global stocks and commodities tumble, crude oil hits lowest since 2021
- Major U.S. firms with China exposure, like GE Healthcare and DuPont, lead losses
- Bond yields fall sharply, signaling rising recession fears
- Investors await possible tariff negotiations, hope for reversal remains
- European, Asian markets see sharp declines, DAX and CAC 40 down over 5%
S&P 500 down 5%, Dow Plunges 1,600 Points After China Tariffs
Deep Look
Global stock markets plunged Friday as China announced sweeping retaliatory tariffs against the United States, intensifying fears of a prolonged trade war and possible global recession. The Dow Jones Industrial Average dropped over 1,656 points, while the S&P 500 and Nasdaq each fell nearly 5.5% in early trading.
Trump criticized China’s retaliation on Friday, saying on his Truth Social platform that “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”
The sell-off followed news that China will impose a 34% tariff on all U.S. imports beginning April 10, matching the recent hike announced by President Donald Trump. The escalation between the world’s two largest economies sent shockwaves through financial markets, with European and Asian indexes also tumbling.
The S&P 500 is now down nearly 15% from its February record high, and the declines mark the worst two-day stretch for markets since the early days of the COVID-19 pandemic in 2020. Despite a strong U.S. jobs report showing better-than-expected hiring in March, investor sentiment remained firmly negative.
“The job report was backward-looking. What the market is reacting to is what lies ahead,” said Brian Jacobsen, chief economist at Annex Wealth Management. “Investors are worried that the deepening trade war will trigger a global recession.”
The Labor Department reported Friday morning that U.S. employers added more jobs than expected in March, a typically market-lifting headline. However, the optimism was short-lived, overshadowed by fears that escalating tariffs will stifle economic growth and fuel supply chain disruptions across industries.
But that jobs data was backward looking, and the fear hitting financial markets is about what’s to come.
“The world has changed, and the economic conditions have changed,” said Rick Rieder, chief investment officer of global fixed income at BlackRock.
Crude oil prices fell to their lowest levels since 2021, while copper and other industrial metals also declined sharply, reflecting concerns that global demand may slump. Treasury yields dropped significantly as investors flocked to safer assets, signaling expectations that the Federal Reserve may need to cut interest rates to cushion the blow.
DuPont dropped 16.8% after China said its regulators are launching an anti-trust investigation into DuPont China group, a subsidiary of the chemical giant. It’s one of several measures targeting American companies and in retaliation for the U.S. tariffs.
The yield on the 10-year Treasury note fell to 3.94% from 4.06% the previous day, down significantly from the 4.80% seen at the start of the year—a stark indicator of market anxiety.
U.S. companies with deep ties to China took the hardest hits. GE Healthcare, which generates 12% of its revenue from the China region, fell 13.4%—the largest drop in the S&P 500. DuPont tumbled 12.5% after China’s regulators announced an antitrust investigation into its Chinese subsidiary, widely viewed as a retaliatory move.
Airlines were also impacted. United Airlines, which relies heavily on trans-Pacific travel and partners with Air China, saw its shares fall 9.4%.
President Trump has remained firm on his tariff strategy, stating Americans might feel “some pain” but that the long-term gains—including boosting domestic manufacturing—will outweigh the short-term impact. On Thursday, he likened the economic strain to surgery, with the U.S. economy as the patient undergoing necessary correction.
“For investors looking at their portfolios, it could have felt like an operation performed without anesthesia,” said Jacobsen.
Still, he noted there may be a silver lining. “The next surprise for investors could be how quickly tariffs get negotiated down,” he added. “Recovery speed will depend on how fast officials act.”
International leaders are already pushing for talks. Vietnam announced plans to send its deputy prime minister to Washington for trade discussions, while the European Commission vowed to respond strongly but kept the door open for negotiation.
Markets overseas mirrored Wall Street’s turmoil. In stock markets abroad, Germany’s DAX lost 5.2%, France’s CAC 40 dropped 4.6% and Japan’s Nikkei 225 fell 2.8%.
As the economic and political fallout from the trade war intensifies, analysts are warning of a high-stakes standoff. Without a quick diplomatic breakthrough, the risks of a prolonged downturn in global growth—and further volatility in financial markets—remain high.
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