Wall Street reacts to President Trump’s trade tariffs plan
President Donald Trump’s campaign to reach fair trade deals with the international community, as expected, hit American consumers with “short-term” pain this week, as stocks measured by the S&P 500, Nasdaq and the Dow Jones Industrial Average all bumped down by a couple of points on the release of his tariff plan.
Trump’s extensive tariff agenda includes tariffs for foreign goods imported into the United States that align with tariffs those nations charge for American goods delivered to their citizens.
Analysts have confirmed that the short-term pain is real, but the plan is for the end result to be a better market for American products and American consumers.
On Thursday, just hours after Trump’s tariff program was revealed, doomsayers claimed the market “fell significantly.” One report even said they “plunged.”
The markets, in fact, were down a couple of percentage points, with those individual stocks whose managers have been relying on favorable import structures to make money hit the hardest.
THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING. THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!!!
Donald Trump Truth Social 4/03/25 08:33 AM
— Donald J. Trump Posts From His Truth Social (@TrumpDailyPosts) April 3, 2025
Trump said, in all caps, “THE OPREATION IS OVER! THE PATIENT LIVED, AND IS HEALING. THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVERY BEFORE…”
“My fellow Americans, this is Liberation Day. April 2, 2025, will forever be remembered as the day American industry was reborn, the day America’s destiny was reclaimed, and the day that we began to Make America Wealthy Again.” –President Donald J. Trump pic.twitter.com/DrjnwK5Lwi
— The White House (@WhiteHouse) April 3, 2025
President Trump is reversing the failed policies of the last 40 years that reward companies who ship American jobs overseas.
Under this administration, you will be rewarded for building your business right here in America. pic.twitter.com/oOGgrlYezk
— Vice President JD Vance (@VP) April 3, 2025
Trump’s been right on trade for 35 years. Washington sold out our workers. That ends today.
— Howard Lutnick (@howardlutnick) April 2, 2025
Trump even has gone to the point of making sure those who have been gaming the system now will be playing in a fair field, by eliminating the so-called ‘de minimus’ exceptions that allowed overseas companies, from China and the like, to ship directly to American consumers and avoid tariffs.
Those rules had allowed shipments under $800 in value to avoid any payment, and billions of those shipments were routinely sent and delivered.
Trump had given the Commerce Department time to develop a plan to collect those payments, and he said that now is in place.
Starting May 2, shipments under $800 will be subject to an ad valorem duty of 30% of the value of the postal item or $25 per postal item. On June 1, the per-postal-item tariff will increase to $50, reports confirmed. Billions in revenue for America are predicted.
The Washington Examiner noted the S&P was down about 3%, the Dow Jones about 2.8%.
Also affected were international markets, with Japan’s Nikkei 225 down 4% and South Korea’s Kospi index down about 2.7%. Other markets in Europe, Germany, France and London were down between 1% and 2%.
Gold was at $3,090. And cryptocurrencies were down in the range of 3%.
Trump said, “For decades, our country has been looted, pillaged, raped, and plundered by nations near and far, both friend and foe alike. With today’s action, we are finally going to be able to make America great again – greater than ever before. Jobs in factories will come roaring back into our country.”
There is a 10% base tariff for all, he said, and “reciprocals” will mean a 54% tariff for China.
Trump has explained the plan is all about the long game – getting trading partners who clearly are protecting their own economies at the expense of the U.S. to reduce or remove their barriers to fairness.
Analyst Charlie Gasparino noted Trump “knows trading partners will respond in kind; U.S. goods will get more expensive overseas and import prices spike. That’s where the stagflation comes in. Everyone I know who knows Trump says he’s committed to the tariff hammer because he believes in his heart that they will rebuild America, bring jobs back to the Rust Belt and as he explained in his press conference, the trade deals we have crafted with even our allies are so unfair.”
He said the “good” that could happen is that, “Trump’s art-of-the-deal making skills will change the protectionist behavior of our trade partners.”
Sid Miller, of the Texas Department of Agriculture, said, “President Trump doesn’t often hold back—and yesterday was no exception. The world is quickly realizing that in his second term, you either strike a fair deal or face the consequences. These tariffs mark a bold step toward ensuring that American farmers, ranchers, and producers are no longer subjected to unfair trade practices. The goal is clear: to reverse decades of one-sided agreements and secure fair, equitable deals for all U.S. industries—not just agriculture. Our president has proven yet again that he keeps his promises.
“I won’t sugarcoat the reality that there will be short-term challenges for our agricultural community. However, this trade war is about something bigger: securing lasting, fair agreements that protect the American farmer. President Trump has made it clear that our small farmers will not be left behind. Under the guidance of Secretary Brooke Rollins, the USDA has already stepped up, demonstrating a strong commitment to providing the necessary support. I have full confidence that this administration will continue to equip our farmers and ranchers with the resources they need to weather this storm and emerge stronger than ever.”