Dow takes hit as global markets adapt to Trump's tariff news

On Thursday morning, after President Donald Trump announced a number of tariffs on different countries the evening prior, the S&P 500 and Dow Jones dropped as global markets are looking to adapt to the president’s tariff plan.

The Dow Jones Industrial Average fell by 1,400 points or 3.3 percent, while the S&P 500 lost 4 percent on Thursday after Trump announced the tariff plan, according to CNBC. “We will charge them approximately half of what they are and have been charging us," Trump said from the White House Rose Garden. "So, the tariffs will be not a full reciprocal."

Using a baseline of 10 percent on all imports, Trump unveiled the plan and announced a number of reciprocal tariffs on countries that have usually charged the import tax on US goods, including a tariff on China at 34 percent and EU goods getting hit with a tariff at 20 percent.

China's overall tariff rate on US goods is at 67 percent, and the tariff rate from the EU on US goods is 39 percent, according to the chart, which takes into account "currency manipulation and trade barriers."

The 10 percent baseline tariff is set to be implemented on April 5. Trump has stated that countries can avoid paying the reciprocal tariffs if they drop their various trade barriers to US goods. Ahead of the April 2 announcement, Israel said it was dropping all their tariffs on US imports.

Japan, which recently pledged an investment of $1 trillion to the United States for an oil and gas project in Alaska, was hit with a tariff of 24 percent. Japan has a tariff rate of 46 percent on American goods, according to the chart. India was hit with a tariff of 24 percent.

India was indicated as having a tariff rate of 54 percent for US goods, however, Trump said in recent days that India will soon be substantially lowering their tariffs against the US.

Several large stocks fell in response to the tariffs being implemented, including chip manufacturer Nvidia, which fell off by 6 percent; Tesla likewise fell by 6 percent, and Apple fell by 9 percent.

Publicly traded retail companies, in particular, took a hit, with Nike dropping by 13 percent. Gap and Five Below dropped by 22 and 29 percent, respectively. The drop in retail stocks are possibly in reaction to the higher tariffs on China, which produces a large portion of the world’s textiles.