President Donald Trump vowed this week to "make America wealthy again" with a wave of new tariffs, declaring a national emergency over the country's trade deficits.
"This will be indeed the golden age of America. It's coming back. We're going to come back very strongly," Trump said during the "Liberation Day" event in the Rose Garden on Wednesday.
The president rolled out a blanket 10% tariff on most foreign countries, with higher reciprocal tariffs for certain nations. Immediately after the announcement, which came after the stock markets closed on Wednesday, stock futures plummeted.
RELATED STORY | Dow falls below 39,000 days after Trump tariff announcement
At the opening bell on Thursday, the Dow had already fallen more than 1,200 points. The markets saw their sharpest decline in more than two years, losing roughly $2.7 trillion in market value. The U.S. dollar also weakened to its lowest level so far this year.
The nonpartisan Tax Foundation estimated the tariffs will cost the average American household $2,100 per year, and many economists predicted a recession will hit by the end of the year if the tariffs remain in place.
However, President Trump remained optimistic Thursday, saying, "The markets are going to boom, the stock is going to boom, the country is going to boom, and the rest of the world wants to see is there any way they can make a deal."
RELATED STORY | Read the full list of countries facing Trump's reciprocal tariffs
White House officials urged patience amid the market chaos. Press Secretary Karoline Leavitt responded to questions about market jitters on Thursday, saying, "Trust in President Trump. This is a president who is doubling down on his proven economic formula from his first term."
The administration also warned foreign leaders not to retaliate.
"Everybody sit back, take a deep breath, don't immediately retaliate," said Treasury Secretary Scott Bessent in an interview with CNN. "Let's see where this goes, because if you retaliate, that's how we get escalation."
However, China announced on Friday that it would retaliate by imposing a 34% tariff on U.S. imports beginning April 10.
Meanwhile, some industry leaders have applauded Trump's tariffs, including the National Council of Textile Organizations, whose CEO said the move would "finally begin rebalancing America's trade positioning in markets at home and abroad."
This story was initially reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
