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Market Reaction to Tariffs: S&P 500 Drops 6%, Dow Sheds 2,200 Points

Published

April 28, 2026

China’s announcement of retaliatory tariffs, mirroring President Donald Trump’s earlier hikes, sent shockwaves through the markets on April 4, 2025. The S&P 500 tumbled 6%, while the Dow Jones Industrial Average plunged 2,231 points (5.5%), as escalating trade tensions between the world’s two largest economies overshadowed a stronger-than-expected U.S. jobs report. The selloff fueled recession fears and marked the S&P 500’s worst week since March 2020, with losses rippling across nearly every sector. Read more.

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