US stocks plunged in after-hours trading after President Donald Trump announced broad tariffs starting at 10 percent — with much higher rates for certain countries.
Within minutes of Trump's announcement, futures tracking America's flagship S&P 500 fell two per cent, while the Nasdaq dropped three per cent — the kind of falls not seen since the start of the pandemic.
The sharp selloff followed Trump's fiery remarks, in which he accused foreign nations of 'ripping off' the United States and vowed to impose tariffs on imports across the globe. The tariffs were higher than expected.
Wall Street fears the move will stifle economic growth, drive up inflation and further rattle global stock markets when trading resumes in Asia and Europe on Thursday.
Most Americans' retirement savings, including 401(K)s, are tied to stock market performance. They are invested in shares and funds that track the major indices.