Trump tariffs live: US stocks plummet in after-hours trading as experts warn Americans could see higher costs
US stocks begin plummeting in after-hours trading
Although Donald Trump announced his tariffs shortly after trading ended on Wall Street, US stocks have already plummeted in after-hours trading.
Dow futures have fallen more than 950 points, or 2.32%. S&P 500 futures dropped 3.40%, and Nasdaq 100 futures sank 4.22%.
Key events
Australian Prime Minister Anthony Albanese has voiced confusion about the tariffs levied on Norfolk Island, which is an Australian territory.
“I think Norfolk Island somehow has been hit with 29% tariff rather than 10%. Last time I looked, Norfolk Island was a part of Australia,” he told ABC Radio Melbourne.
The tariffs raised on Australia are 10%; those levied on Christmas Island (an external territory of the country) are also 10%. While those aimed at Norfolk Island (another external territory) stand at 29%.
Eva Corlett
New Zealand will face a 10% baseline tariff on all imported goods into the US, as part of Donald Trump’s sweeping worldwide tariffs announcement.
The announcement has puzzled New Zealand, which says the US administration’s claim that New Zealand imposes a 20% tariff rate on US goods does not add up.
Roughly 75% of goods from the US into New Zealand have low or no tariffs imposed, while tariffs levied on US imports is about 1.9% on average.
“New Zealand applies a much lower tariff rate for US exports into New Zealand – I’ve asked officials to clarify, but we don’t have a 20% tariff,” New Zealand’s trade minister Todd McClay told media on Thursday.
The US is New Zealand’s fastest growing export market, becoming its second largest in 2024, ahead of Australia and after China. New Zealand exports to the US surpassed NZD $9b in 2024, driven by meat, dairy and wine. The new tariff could mean a NZD $900m bill for New Zealand exporters.
McClay said the imposition of tariffs was not unexpected but it would have an impact on New Zealand exporters, some of which may look to other markets.
“Tariff rates anywhere upon New Zealand exporters is not a good thing … but New Zealand exporters are very nimble, and they are very able and very competitive,” McClay said.
New Zealand would not be looking to retaliate with tariffs on the US, McClay said.
“That would put up prices on New Zealand consumers, and it would be inflationary.”
US stocks begin plummeting in after-hours trading
Although Donald Trump announced his tariffs shortly after trading ended on Wall Street, US stocks have already plummeted in after-hours trading.
Dow futures have fallen more than 950 points, or 2.32%. S&P 500 futures dropped 3.40%, and Nasdaq 100 futures sank 4.22%.
Trump tariffs could bring higher cost for US consumers, experts warn
Business leaders expect Donald Trump’s “reciprocal tariffs” will lead to higher costs for US consumers.
“More tariffs equal more anxiety and uncertainty for American businesses and consumers,” said David French, executive vice-president of government relations at the National Retail Federation. “While leaders in Washington may not care about higher prices, hardworking American families do.”
The National Restaurant Association also released a statement, saying tariffs “at this scale will create change and disruption that restaurant operators will have to navigate to keep their restaurants open”.
As the full list of countries subject to Donald Trump’s “reciprocal tariffs” becomes available, some are voicing amusement at the inclusion of the Heard and McDonald Islands, an uninhabited Australian external territory.
The barren, volcanic Antarctic islands are not accessible by airplane and can only be reached by a two-week sea journey from Australia. The islands are home to no people, but instead a handful of insects, seabirds, seals and penguins.
Nations react to Trump’s ‘reciprocal tariffs’ announcement
Reactions to Donald Trump’s “reciprocal tariffs” are beginning to pour in from Europe, where it is approaching midnight, and Australia.
Norway
“We are doing the calculations and looking through what has come. But it is obvious that this is serious for the world economy, and it is critical for Norway,” Norwegian minister of trade and industry Cecilie Myrseth, told state broadcaster NRK. “What we can at first glance is 20% tariffs against the (European Union), and at least 10–15% against Norway. That is of great importance, because we also send a lot of exports to the EU. So, it will also affect us. This is a serious day, and now, we need to get an overview of what this actually means for Norway.”
Switzerland
“The Federal Council has taken note of the US decisions on tariffs. It will quickly determine the next steps,” president of the Swiss Federation Karin Keller-Sutter wrote in a social media post. “The country’s long-term economic interests are the priority. Respect for international law and free trade are fundamental.”
Australia
“This is not the act of a friend,” said Australian prime minister Anthony Albanese. He hesitated to promise retaliatory tariffs, however, saying Australia would not “join a race to the bottom that leads to higher prices and slower growth.”
Sweden
“Sweden will continue to stand up for free trade and international cooperation,” Swedish prime minister Ulf Kristersson wrote in a social media post.
Economists dispute Donald Trump’s claim today that the United States is “kind” to only levy tariffs of half of what other countries charge the US.
The chart Trump showed at his Rose Garden ceremony this afternoon included tallies of the rates foreign countries charge the United States, but those calculations included “currency manipulation and trade barriers”. It’s unclear how the Trump administration calculated those percentages.
University of Michigan economist Justin Wolfers says that the “reciprocal” tariffs Trump levied will give the United States “the highest tariff rates of any industrialized country. And it’s not even close.”
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In a post on BlueSky, Wolfers shared a graph showing the average tariff rates countries levied in 2022. The majority are in the 1% range. “The Trump proposal for 2025 will be literally off the scale of this graph,” he wrote.
A summary of Trump’s so-called ‘liberation day’ tariff announcement
At a 4pm ET Rose Garden ceremony today, Donald Trump announced sweeping tariffs on US trade partners across the world.
Here’s a short summary of the key takeaways:
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The president announced sweeping tariffs of 10% to 49% on all goods imported from abroad. Those included a 34% tariff on goods from China, a 20% tariff on goods from the European Union and a 10% tariff on goods from the United Kingdom.
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He did not levy any tariffs on Canada or Mexico.
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Trump announced a 25% tariff on all foreign automakers.
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He told foreign leaders that want to avoid the tariffs: “Terminate your own tariffs, drop your barriers, don’t manipulate your currencies.”
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European Commission president Ursula von der Leyen will make a statement responding to the tariffs at 5am CET tomorrow.
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Top Democrats have begun responding to the announcement, saying “the president is risking a recession”.
Lisa O’Carroll
The Irish deputy prime minister and minister for trade Simon Harris has said the decision to slap 20% tariffs on the EU is regrettable.
Ireland had been bracing itself for far worse with potential sectoral tariffs on the pharma sector after Donald Trump repeatedly said he wanted the US companies like Pfizer and Johnson and Johnson back.
Harris said: “I deeply regret the announcement on tariffs made by President Trump tonight.
“As I have been saying for some time, there are no winners when it comes to tariffs – they are bad for consumers, put jobs at risk and drive up costs and uncertainty for business”
Trade ministers in the EU hold a summit on the matter on Monday.
Lisa O’Carroll
The UK car manufacturing body, Society of Motor Manufacturers and Traders, has also sharply criticised the tariffs.
The CEO Mike Hawes said a 10% tariff, while lower than other countries, is another “deeply disappointing and potentially damaging measure” on top of the 25% tariff car exporters which include the makers of the Mini car made by BMW in Oxford, face.
“These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand. Trade discussions must continue at pace, therefore, and we urge all parties to continue to negotiate and deliver solutions which support jobs, consumer demand and economic growth across both sides of the Atlantic.”
