US markets hit pandemic lows as Scott Bessent issues warning amid Donald Trump's tariffs

Wall Street fears the move will stifle economic growth, fuel inflation.

UPDATED 20 HOURS AGO

Most Americans’ retirement savings, tied to stock performance through 401(K)s and index funds, took an immediate hit.

Washington D.C: US stocks plummeted in after-hours trading after President Donald Trump unveiled broad tariffs, starting at 10% with significantly higher rates for select countries. Within minutes of his announcement, S&P 500 futures fell 2%, while the Nasdaq dropped 3% — losses not seen since the early days of the pandemic.

US treasury secretary Scott Bessent warned countries to not retaliate: “Let’s see where this goes, because if you retaliate, that’s how we get escalation,” Bessent told CNN. “Doing anything rash would be unwise,” he added. When asked how he expected US stock markets to react to the tariffs he said: “I don’t know.” He continued: "What’s going to be important are the underlying economic fundamentals, because at the end of the day, Warren Buffett says, in the short run, the market is a voting machine. In the long run, it’s a weighing machine."

The selloff followed Trump’s fiery speech, where he accused foreign nations of "ripping off" the US and vowed to impose steep tariffs on global imports. Wall Street fears the move will stifle economic growth, fuel inflation, and rattle global markets when trading resumes in Asia and Europe.

A 25% tariff on foreign cars also takes effect immediately.

By 6:30pm ET, S&P 500 futures were down 2.3%, Nasdaq-100 futures plunged 4.2%, and Dow Jones futures slipped 2.3%. Major importers took heavy losses—Nike dropped 6%, General Motors fell 3%, and Tesla and Nvidia each lost about 3%. Retailers like Five Below and Gap tumbled 11% and 12%, respectively.

Most Americans’ retirement savings, tied to stock performance through 401(K)s and index funds, took an immediate hit. If prices don’t recover, the damage could worsen when markets reopen Thursday.

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Trump declared a national economic emergency to implement the tariffs, which take effect April 5. A baseline 10% tariff will apply to all imports, with higher rates for nations imposing steep duties on US goods.

A 25% tariff on foreign cars also takes effect immediately. Canada and Mexico were exempt, as they already face 25% tariffs under prior agreements.