Dow Plunges 2200 Points as Trump Tariffs Spark Worst Stock Market Meltdown Since 2020

The U.S. stock market experienced its most severe downturn since 2020 on April 4, 2025, with the Dow Jones Industrial Average plummeting by 2200 points. This significant drop was triggered by newly announced tariffs on Chinese goods by former President Donald Trump. The Nasdaq also entered a bear market, reflecting widespread investor panic and uncertainty over the future of U.S.-China trade relations.

The tariffs, aimed at countering what Trump described as unfair trade practices by China, have reignited fears of a renewed trade war between the world's two largest economies. Financial analysts are now revising their forecasts, with many predicting further volatility in global markets. The sudden policy shift has left investors scrambling to adjust their portfolios, with significant sell-offs observed across multiple sectors.

This latest development comes at a time when the global economy is still recovering from previous shocks, raising concerns about the potential for a broader economic downturn. Market observers are closely watching for any signs of diplomatic efforts to mitigate the impact of these tariffs and stabilize the economic landscape.

• China
• Donald Trump
• Dow Jones
• Nasdaq

Detailed

Stocks post worst week since pandemic on tariff chaos

9 hours ago

- axios

Dow plunges 2,200 points as tariff tumult rocks markets

10 hours ago

- cnn

Wall Street Blew It

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- theatlantic

Stock Market News Today: Dow Plunges Over 2,200 Points; $6.4 Trillion Wiped Out in Largest 2-Day Drop on Record — Live Updates

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- wsj

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Why do tariffs affect the stock market?

Tariffs clearly pose a headwind to economic growth, as corporate profit margins are squeezed by higher prices and households see a decline in inflation-adjusted income. In addition, tariffs will likely put upward pressure on prices, as U.S. importers pass on some of the cost to consumers.

Is the US in a trade war?

An economic conflict between China and the United States has been ongoing since January 2018, when U.S. president Donald Trump began setting tariffs and other trade barriers on China with the goal of forcing it to make changes to what the U.S. says are longstanding unfair trade practices and intellectual property theft ...

What is the US stock market?

The stock market is a trading network that connects investors looking to buy and sell stocks and their derivatives. An easy way to think about think about the stock market is to consider it as a network of stock exchanges where traders and investors buy and sell shares of publicly traded companies.

Is the Nasdaq in a bear market?

Nasdaq confirms it is in bear market, ending more than 20% below record close. Reuters.