New York Stock Market Plunges at Opening Due to 'Mutual Tariff Shock'... Nasdaq Down 4.5%

Trump Imposes '10%＋α' Reciprocal Tariffs Worldwide
S&P Expected to See Largest Drop Since September 2022

The three major indices of the U.S. New York stock market plunged sharply in early trading on the 3rd (local time), the day after President Donald Trump announced 'reciprocal tariffs.' Concerns are growing that the U.S. economy could fall into a recession as President Trump pulls the trigger on reciprocal tariffs, and that the global trade war could escalate into a full-scale conflict.

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As of 9:32 a.m. in the New York stock market that day, the Dow Jones Industrial Average (Dow) focused on blue-chip stocks was down 1,182.23 points (2.8%) from the previous trading day, standing at 41,043.09. The S&P 500, centered on large-cap stocks, was trading at 5,483.56, plunging 187.41 points (3.3%), expected to record the largest daily drop since September 2022. The Nasdaq, focused on tech stocks, was trading at 16,813.63, down 787.41 points (4.47%).

By stock, consumer goods company Nike fell sharply by 10.9%. Apple, which produces the most iPhones in China, dropped 8.04%, and Dollar Tree, a discount retailer mainly selling imported goods, plunged 10.7%. Nvidia declined 5.77%, and Tesla was down 3.48%.

President Trump announced at the White House Rose Garden the previous day that reciprocal tariffs of at least 10% would be imposed on all trading partners worldwide. After imposing a basic tariff of 10% on all countries, tariffs of '10% + α' will be applied to so-called 'worst offender' countries, where trade barriers are deemed high after reviewing both tariff and non-tariff barriers.

South Korea, among Free Trade Agreement (FTA) partner countries, was hit with the highest tariff of 25%. China, the main opponent in the trade war that began in the first term of the administration, will face a 34% tariff, and the European Union (EU) will be subject to a 20% tariff. The 10% basic tariff will take effect on the 5th, and the individual '＋α' tariffs will be implemented on the 9th.