For the third straight day, the U.S. stock market remained turbulent following President Trump’s sweeping tariffs. A wild day of trading saw huge swings, fueled by rumors and growing tensions with China, but ended with key negotiations showing early signs of progress.
Key Facts:
- The Dow closed down 349 points (0.9%) Monday; the S&P 500 and Nasdaq had mixed results after dramatic swings.
- Trump threatened a 50% tariff on China if it doesn’t back down from its 34% retaliatory tariff.
- Apple fell 3.7%, Tesla dropped 2.6%, while Amazon rose 2.5%.
- The EU proposed zero-for-zero industrial tariffs; Japan and Israel opened talks with the U.S.
- Over 50 countries are reportedly engaging in talks following Trump’s trade actions.
Stock Market Reactions to Tariffs: What Happened and Why
Wall Street experienced intense volatility on Monday, as traders tried to make sense of Trump’s tariff strategy and global reactions.
The Dow swung over 4,000 points in total during the day due to a false social media rumor that Trump was considering a 90-day tariff delay.
Despite the initial chaos, the markets somewhat stabilized, with tech stocks like Nvidia and Palantir helping the Nasdaq inch up 0.1%.
Apple and Tesla weren’t so lucky, as fears over the U.S.-China trade war pushed their shares down sharply.
China, which slapped a 34% retaliatory tariff on the U.S. last Friday, was warned by Trump that it had until Tuesday to remove the penalty or face a further 50% hike.
Meanwhile, other countries began signaling a willingness to avoid economic conflict by coming to the table for negotiations.
Commentary: Are Tariffs Working? Signs Point to “Yes”
President Trump’s tough stance on tariffs is shaking global markets, but it may be forcing the exact outcome he promised: renegotiated trade deals and fairer terms for the U.S.
While Wall Street dislikes uncertainty, what we’re seeing isn’t just chaos—it’s leverage.
Countries like Japan and Israel are already stepping forward to open discussions.
The European Union is proposing an elimination of industrial tariffs.
These are early wins for Trump’s strategy.
China, however, remains the largest hurdle.
Its 34% retaliatory tariff and the president’s counter-threat of an additional 50% could seriously damage trade on both sides.
Still, Trump has long said there would be short-term pain for long-term gain.
The market didn’t crash the way some had predicted.
In fact, investor activity turned sharply around after early panic.
Treasury Secretary Scott Bessent’s report that over 50 countries are engaging with the U.S. is no small matter.
That level of response suggests a global reckoning with outdated trade norms—and Trump’s willingness to take bold steps is accelerating the shift.
It’s far too soon to declare total victory, especially with China still posturing.
But as more countries seek exemptions or new terms, the pressure is on.
Trump’s strategy might not be pretty, but it’s moving the needle in a way that polite diplomacy hasn’t managed in decades.
The Bottom Line
Markets are reacting nervously to Trump’s aggressive tariff rollout, but the global response may prove he’s on the right track.
Countries are signaling they’d rather deal than face penalties, though China remains a key unknown.
The next few weeks will reveal whether this trade shake-up becomes a breakthrough—or a breakdown.
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