Markets slumped the day after President Donald Trump rolled out a sweeping "reciprocal tariff" policy that included a baseline 10% tariff on imports from nearly every country.
The policy imposes significantly higher rates on several major trade partners — 34% on Chinese goods, 20% on imports from the European Union, 46% on Vietnam, and 32% on Taiwan.
Economists and U.S. allies are now questioning how the White House determined the figures it claims reflect the tariffs those countries impose on American exports. The methodology behind the numbers remains unclear, and experts continue to debate what the broader impact of the new tariffs might be.
Meanwhile, a new round of U.S. tariffs on imported automobiles went into effect overnight, prompting Stellantis to halt production at its facilities in Mexico and Canada.
Though administration officials had maintained the tariffs were not intended as leverage, Trump said he is now open to talks — appearing to contradict his own aides.
European markets ended the day down 2.7%, reflecting growing concerns over the fallout from the administration's latest trade moves.
