Nasdaq Sinks 3.56%, Dow Falls Nearly 2%; Apple and Nvidia Shares Slide as Trade Tensions EscalateBy
Washington | (Economy India): Global markets were rattled on Friday after U.S. President Donald Trump announced a 100% tariff on Chinese imports, reigniting fears of a full-blown trade war between the world’s two largest economies.
Following the announcement, Wall Street witnessed massive sell-offs. The Nasdaq Composite plunged 3.56% to close at 22,204, while the Dow Jones Industrial Average fell 1.90% to 45,480. The S&P 500 dropped 2.71%, settling at 6,553 — with nearly six out of every seven stocks in the red.
📉 $1.5 Trillion in Market Value Wiped Out
The steep declines wiped out over $1.5 trillion in market capitalization from U.S. equities in a single day. Meanwhile, the cryptocurrency market saw a record $19 billion liquidation, marking one of the largest single-day corrections in history.
💻 Tech Stocks Take the Hardest Hit: Nvidia Down 5%, Apple Down 3.45%
The technology sector bore the brunt of the sell-off.
Nvidia’s shares tumbled 5%, while Apple fell 3.45%, as investors feared that rising tariffs would disrupt global supply chains, especially for semiconductors, electronics, and consumer goods.
Small and mid-cap companies, already struggling with supply chain uncertainty, faced sharp double-digit declines as investors moved away from riskier assets.
Investor Panic Deepens Amid Renewed Trade War Fears
Analysts say Trump’s announcement has rekindled 2018-style trade war anxiety, shaking investor confidence across global markets.
“Markets were hoping for a reset in U.S.–China relations. Instead, this move signals a return to confrontation,” said Mark Daniels, senior economist at Global Insights. “The 100% tariff effectively doubles existing trade barriers and could choke import-dependent sectors.”
🇺🇸 Trump’s Statement: “China Has Taken an Unprecedented Stance”
In a post on Truth Social, President Trump wrote:
“China has taken an unprecedented stance. From November 1, 2025, (or earlier, if China escalates), the United States will impose a 100% tariff on all Chinese imports, on top of existing duties.”
He also announced new export controls on critical software beginning November 1.
Currently, Chinese goods entering the U.S. face a 30% tariff, which means total duties could reach 130% once the new measures take effect.
🌍 China Tightens Grip on Rare Earth Exports
In a retaliatory move, China has imposed export restrictions on five additional rare earth materials — Holmium, Erbium, Thulium, Europium, and Ytterbium — bringing the total number of restricted materials to 12.
China holds reserves of all 17 rare earth elements, which are essential in electronics, electric vehicles (EVs), and defense applications. The country already controls 70% of global rare earth supply and 90% of processing capacity, giving it immense leverage over Western industries.
Under the new restrictions, companies will require special export licenses from Beijing to access these critical minerals — a move expected to hit U.S. and allied defense and tech manufacturers hard.
💬 Global Repercussions Expected
Economists warn that Trump’s tariffs, coupled with China’s export controls, could:
- Increase inflationary pressures in the U.S.
- Disrupt semiconductor and EV supply chains
- Slow down global economic growth heading into 2026
Financial analysts predict further volatility in equity and commodity markets over the coming weeks as investors reassess the potential for a prolonged U.S.–China trade confrontation.
High-Stakes Economic Brinkmanship
If tensions continue to rise, experts say global supply chains — already fragile due to geopolitical fragmentation — could face renewed bottlenecks. Both countries are now seen as entering a new era of economic brinkmanship, with the technology and energy sectors caught in the middle.
(Economy India)
