US markets plunged to a two-year low on Thursday following President Donald Trump’s sweeping tariffs on imports from more than 100 countries. The US dollar also weakened, reflecting market uncertainty.

Stock market reaction

By noon, the US stock market’s market cap had fallen to $2.7 trillion, according to The Wall Street Journal.

• Dow Jones dropped 1,300 points (3.1%)
• Nasdaq fell 4.8%

Trump’s global tariffs

President Trump announced a baseline 10% tariff on all imports, with higher rates for specific countries:

• China – 34%
• India – 26%
• European Union – 20%
• UK – 10%
• Other affected countries include Japan, South Korea, Vietnam, Switzerland, Bangladesh, Pakistan, and Sri Lanka

Trump justified the move by stating that US allies have been more unfair in trade than adversaries.

Exemptions and previous tariffs

• Canada and Mexico are exempt but still face a 25% levy aimed at curbing illegal migration and fentanyl smuggling.
• This marks the fourth round of tariffs under Trump’s economic strategy to cut the trade deficit and push manufacturers to the US.
• Previous rounds included steel and aluminum tariffs (25%), automobile and auto part tariffs (25%), and planned pharmaceutical tariffs.

As markets adjust to these sweeping trade policies, global economic uncertainty is set to increase.