(NewsNation) — President Donald Trump’s tariffs continued to rattle markets domestically and abroad on Monday, causing steep slides and minor market reversals in the U.S.
All three major indices — Dow, Nasdaq and S&P 500 — remained firmly in the red as markets opened Monday. The Dow Jones Industrial Average initially dropped 1,200 points, and the Nasdaq-100 and S&P 500 opened down 3% or worse.
Within an hour of the markets opening, Wall Street saw wins across the board, with all three indices back in the green — albeit briefly.
The stock market seesaw comes as many “misconstrued” National Economic Council director Kevin Hassett’s comments about a potential 90-day tariff freeze, a senior White House administration official told NewsNation.
The official clarified that a 90-day pause is not being considered at the moment.
Trump threatens additional 50% tariff on China
Trump took to Truth Social to protest China’s upcoming 34% reciprocal tariff on American goods.
“If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump posted.
If Trump adds 50% tariffs onto the already-announced 34% tariff set to take effect later this week, plus the previously standing 20% tariff, that would put the total amount at 104%.
He said he would also cancel meetings with China’s leaders to discuss trade if they didn’t remove their 34% tariff by Tuesday.
EU open to tariff negotiations amid global market drop
The newest numbers come after a massive sell-off that sent Wall Street into a frenzy late last week, fueled recession fears and spiraled international markets.
Asian markets plunged to start the week, with Tokyo’s Nikkei 225 index dropping nearly 8% shortly after the market opened Monday. At one point, Hong Kong’s Hang Seng fell 13.2%, Shanghai Composite index 6.2% and South Korea’s Kospi 5.57%, per Google Finance.
India’s stocks saw the biggest single-day drop in percentage since March 2020, and the Australian dollar fell to its lowest since the early months of the COVID-19 pandemic.
A similar story played out in Europe, with Germany’s DAX index down 5.8% in morning trading, Paris’ CAC 40 losing 5.8% and Britain’s FTSE 100 shedding 4.9%.
European Union Commission President Ursula von der Leyen said the organization is “ready to negotiate with the United States,” and could offer a “zero-for-zero” tariff agreement, multiple outlets report.
Treasury Secretary Scott Bessent said that by Sunday, “more than 50 countries” had reached out about a deal to lift tariffs.
On Monday, a spokesperson for Beijing accused the U.S. of “unilateralism, protectionism and economic bullying” and “putting the U.S. first over international rules.”
Trump doubles down on his tariffs as stocks slides
On his so-called “Liberation Day,” Trump increased tariffs on Chinese goods to 54%. China responded by adding a 34% tax on all U.S. imports.
Those tariffs and retaliatory measures are set to take effect Wednesday.
On Sunday night, Trump downplayed Wall Street’s reaction and defended the tariffs as necessary.
When asked how far markets would have to fall, Trump said, “I think your question is so stupid. I don’t want anything to go down. But sometimes you have to take medicine to fix something.”
In a social media post later that night, Trump said, “We have massive Financial Deficits with China, the European Union, and many others. The only way this problem can be cured is with TARIFFS … Some day people will realize that Tariffs, for the United States of America, are a very beautiful thing!”
The levies are expected to be a major topic of discussion when Trump meets with Israeli Prime Minister Benjamin Netanyahu on Monday. The U.S. has slapped a 17% tariff on Israel.
The Associated Press contributed to this report.
