US President Donald Trump announced on Thursday (April 03) morning that his sweeping tariffs against nearly every country were now in force, declaring that "the operation is over!" But the US financial markets did not share his optimism, with stock futures plunging.

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Trump claims the US economy will emerge stronger

Taking to Truth Social, Trump posted in all caps, "THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!!!"

Despite his confidence, the S&P 500 stock futures dropped by over 3.5%, and the Dow Jones was set to open nearly 1,300 points lower.

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Tariffs hit nearly every US trading partner

As part of his so-called "Liberation Day" on Wednesday, Trump introduced a baseline 10% tariff on all imports, with higher customised rates for specific countries. The only exceptions were nations already under sanctions and those previously hit with tariffs.

Speaking from the White House Rose Garden, Trump argued that the US had long been subject to unfair trade practices, claiming that America had been “looted, pillaged, raped, and plundered” by foreign nations. He insisted that his tariffs would restore American industry, ushering in a "golden age of America."

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Some tariffs go as high as 50%

Under the new rules:

  • A 10% tax applies to all imported goods
  • Some nations face tariffs as high as 50%
  • Canada and Mexico remain exempt (as they have already been subject to 25% tariffs since Trump's return to office)

Also read: Trump’s new tariffs hit Ukraine, penguins, and almost every country, but not Russia. Here’s why

Trump has justified these tariffs as a means to boost American manufacturing and make global trade "fairer." But the move has caused chaos worldwide, with multiple nations threatening retaliation and urging the US to return to the negotiating table.

(With inputs from agencies)