Trump announces 'Liberation Day' tariffs, triggering a Wall Street sell-off

On 2 April 2025, US President Donald Trump announced a broad set of "reciprocal" tariffs on imports from most trading partners, a day he called "Liberation Day". The plan combined a baseline tariff on nearly all imported goods with higher rates on countries the White House said had unfair trade barriers.

The announcement was larger and more far-reaching than many investors and analysts had expected. Over the following days, Wall Street suffered a sharp sell-off. The Nasdaq Composite, which is heavy with technology stocks, recorded some of its steepest daily falls of the year, and the S&P 500 and Dow Jones also dropped heavily.

The turmoil raised fears of higher prices, slower growth and retaliation from other countries. It also exposed how sensitive markets, and technology shares in particular, were to shifts in US economic policy. The episode became a reference point for later swings in the Nasdaq.