Trump says tariffs 'going very well' as markets fall

What happened

Stock markets in the U.S. and around the world plummeted Thursday in response to the steeper-than-expected universal tariffs President Donald Trump announced on Wednesday.

"Virtually every sector suffered big losses as U.S. financial markets closed with their biggest one-day drop since Covid-19 flattened the global economy five years ago," The Associated Press said. The Dow Jones Industrial Average closed down 1679, or 4%, while the Nasdaq fell 6% and the S&P 500 tumbled 4.8%. U.S. stocks "lost roughly $3.1 trillion in market value," The Wall Street Journal said.

Who said what

Trump told reporters Thursday he thought the tariff rollout was "going very well" and "the markets are going to boom." He suggested he would add new import taxes on pharmaceuticals and semiconductors. The tariffs Trump has already announced would "lift the average duty above the previous peak of 1930," making it "by far the most disruptive component of an agenda that may be one of the most disruptive of any new president since the 1930s," the Journal said.

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Trump also "contradicted his top aides on the purpose" of the tariffs, "adding to the uncertainty over the trade war," The Washington Post said. Top trade advisers and White House internal talking points insisted the tariffs are not a starting point for negotiations, but Trump told reporters Thursday evening that "the tariffs give us great power to negotiate," adding, "Every country is calling us."

What next?

Wall Street traders "voted with their dollars" but "Republicans on Capitol Hill — who could use their own votes to stop the new tariffs cold — made clear they had no intention of acting anytime soon," Politico said. The bulk of the new tariffs take effect April 9, and "grocery shoppers are likely to feel the impact of the Trump administration's sweeping new tariffs before April is over," The New York Times said, starting with fresh produce, then "staples like sugar and coffee, which is already priced at a historic high," and clothing, electronics and cars.