April 7 (UPI) — U.S. markets closed to open the week on Monday in response to American tariffs as President Donald Trump publicly held firm to the concept that his levies will lead to economic prosperity.
American stocks opened Monday in a downturn that pointed toward a bear market but then surged upward on rumors that Trump may put a lengthy pause on the tariffs levied against the rest of the world Wednesday but fell again when the rumor was said to be false.
The Dow Jones Industrial Average was down 762.16 points, or 1.99%, while the S&P 500 dropped 1.55% and the Nasdaq Composite slid 1.42% as of noon.
It was only less than seven weeks ago, on Feb. 19, that the S&P hit its record high, and should the market close today in bear market territory, it would be the second-fastest peak-to-bear market shift in history, behind the fastest that occurred during the 2020 COVID-19 pandemic.
Trump posted to social media Monday that as China has issued 34% retaliatory tariffs against the U.S., in addition to “their already record setting tariffs, non-monetary tariffs, illegal subsidization of companies, and massive long term currency manipulation” despite his “warning that any country that retaliates against the U.S. by issuing additional tariffs, above and beyond their already existing long term tariff abuse of our nation, will be immediately met with new and substantially higher tariffs.”
He continued that “if China does not withdraw its 34% increase above their already long term trading abuses by” Tuesday, “the United States will impose additional tariffs on China of 50%” effective Wednesday, and that “all talks with China concerning their requested meetings with us will be terminated.”
That post to Trump’s Truth Social account was at approximately 11:14 a.m., and by 11:30 a.m. the Dow had dropped back to 37, 277. 66.
