Another day, another plunge in the stock market after Donald Trump threatened more tariffs this morning.
Amidst a week of tumbling stocks, Trump thought it was a good idea to bully the European Union with tariff threats today, posting on Truth Social that he would "shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES" in retaliation for the EU's 50% tariff on American whisky imports.
Naturally, by the end of the day, the S&P 500 fell by 10%, the Dow Jones dropped by another 537.36 points, and Nasdaq slipped another 2%.
"Investor sentiment has soured amid uncertainty about…tariffs, and concerns that the U.S. economy could be headed toward a recession," reported Investopedia. And investment strategist Jason Pride echoed this sentiment, saying (via The Wall Street Journal), "That pattern of announcements and imposition of tariffs in fairly rapid fashion is unsettling the markets."
But for the oblivious Trump, still riding high after his bromantic Tesla stunt with Elon Musk yesterday, it was a morning to celebrate. "This will be great for the Wine and Champagne businesses in the US," he crowed on Truth Social about his alcohol trade war with Europe. He hasn't yet addressed the spiraling stock market debacle.
From The Wall Street Journal:
Stocks weathered another rough day Thursday with investors on edge over new tariff threats and mixed inflation news.
The S&P 500 dropped 1.4% and suffered its first correction since October 2023, a decline of more than 10% from its Feb. 19 record high. The tech-heavy Nasdaq Composite declined nearly 2%. The Dow Jones Industrial Average fell 1.3%.
Inflation concerns have intensified as Trump's import levies risk fueling price pressures, while also weighing on growth.
Since its Feb. 19 peak, the S&P has lost an estimated $5.3 trillion, down from a high of about $52 trillion. The Nasdaq suffered a correction last week and is down more than 14% from its December high. The Dow has fallen more than 9% from its own record.
As a side note, it's funny how Trump likes to blame the Biden administration for his self-inflicted economic woes, even though the Dow Jones and Nasdaq hit their record highs on December 4 and December 16, respectively — both when Joe Biden was still president.
Previously: Watch MAGA vendor's excitement fade as he learns how Trump's tariffs affect his business
