The S&P 500 plunged nearly 6%, the Dow Jones Industrial Average fell 5.5%, and the tech-heavy Nasdaq slumped 5.8%, officially entering bear market territory.
“US markets have now lost over $9 trillion in market cap since the Jan 20th Trump 2.0 Inauguration,” said Ajay Bagga, banking and market expert. “US imports are $3.3 trillion. US tariff revenues, even if all imports stay and even if tariffs are collected on ALL these $3.3 trillion of imports, will be $600 billion. Imports will become costlier by around 20 per cent on average. Demand will go down, and import volumes will shrink. So, $600 billion will not be collected. But the market cap loss of $9 trillion is real.”
The sell-off was sparked after China hit back with a steep 34% retaliatory duty on all US imports, effective April 10, escalating fears of a prolonged global trade war. European and Asian indices followed the US slump—Germany’s DAX lost 5%, France’s CAC 40 dropped 4.3%, and Japan’s Nikkei 225 fell 2.8%. Oil prices sank to their lowest levels since 2021, while industrial commodities like copper also recorded sharp declines.

India wasn’t spared either. The Sensex fell 930 points to close at 75,364.69, and the Nifty ended the day 345 points lower at 22,904.45. For the week, the Sensex shed over 2,100 points, with global trade tensions and heightened risk aversion weighing heavily on investor sentiment. Sectors such as IT, metals, pharma, and oil were the worst hit.

‘Tariffs here to stay’: Trump brushes off chaos, markets lose $5 trillion in two days

Amid the market turmoil, President Trump remained unfazed and doubled down on his combative trade policy. Posting on Truth Social, he declared: “Big business is not worried about the Tariffs, because they know they are here to stay, but they are focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our Economy. Very important. Going on right now!!!”
His comments followed a two-day wipeout that erased $5 trillion from the US markets alone. Despite a robust jobs report, investor nerves were frayed over the escalating tariff tit-for-tat and looming fears of a global recession.
Still, Trump struck an optimistic note, urging his followers: “This is a great time to get rich,” and likening the economic upheaval to a surgical procedure—painful but necessary. “China played it wrong, they panicked – the one thing they cannot afford to do!” he wrote in another all-caps post.
He also hinted at progress with other trade partners, stating: “Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the US.”
Outside the US, markets remained under pressure. Germany, France, and Japan all reported heavy losses. Oil and copper continued to fall, deepening concerns about a broader slowdown in global demand.
Meanwhile, US Federal Reserve Chair Jerome Powell issued a warning that the trade war could contribute to “higher inflation and lower growth,” and signalled restraint on interest rate cuts. But Trump pushed back, urging: “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Despite the mounting losses for major corporations like GE Healthcare and DuPont, which have been directly hit by China’s countermeasures, Trump continued to project strength. “ONLY THE WEAK WILL FAIL!” he posted, while spending the weekend golfing at his Mar-a-Lago resort in Florida.