Dow Jones 'evaporates' 1,000 points after Trump's tax announcement

US stock markets plunged in after-hours trading after President Donald Trump announced import tariffs on dozens of economies, starting at at least 10% and going higher for some countries.

The move raises the risk of a global trade war that could negatively impact the US economy.

Shares of multinational corporations fell across the board after Mr. Trump's announcement. (Photo: Getty Image)

According to CNBC, the Dow Jones industrial index lost 1,069 points, equivalent to 2.5%; the S&P 500 index fell 3.6%, and the Nasdaq-100 lost 4.5%.

Shares of multinational companies fell sharply in extended trading, with Nike and Apple both down about 7%. Import-goods stocks were hit the hardest, with Five Below down 14%, Dollar Tree down 11% and Gap down 8.5%.

Meanwhile, technology stocks were also in the red, with Nvidia down 5% and Tesla down 7%.

According to the White House announcement, the basic tax rate of 10% will officially take effect from April 5 for all countries. In the coming days, the US will apply higher tariffs to countries that are taxing US goods at high rates.

The S&P 500 index had rallied for three consecutive sessions this week on expectations that Mr. Trump would not push for a tax plan that was too aggressive, because it risks slowing growth and pushing up inflation.

Since late February, the S&P 500 has been steadily falling, even falling into correction territory at times as Donald Trump's increasingly frequent tariff announcements have made investors uneasy.

That concern is also beginning to be reflected in some slowing economic indicators, further fueling market sentiment toward a recession.

Lagerstroemia (Source: CNBC)

Source: https://vtcnews.vn/dow-jones-boc-hoi-1-000-diem-sau-tuyen-bo-ap-thue-cua-ong-trump-ar935415.html