"On April 4, 2025, the stock market collapsed. And it all began with a single announcement."
What shockwave did the 'Liberation Day' tariff announcement send through the U.S. economy?
Here’s a complete breakdown of today's most critical U.S. economic keywords.
US Why Did the U.S. Economy Shake on April 4, 2025?
On April 2, 2025, former President Donald Trump officially announced the "Liberation Day" tariff measures.
Under the guise of reducing the trade deficit and revitalizing domestic manufacturing,
the U.S. imposed at least a 10% tariff on all imports, with certain countries facing tariffs as high as 54%.
It was one of the most aggressive protectionist moves in recent history.
📈 China’s Retaliation and Escalating Global Trade Tensions
Immediately after the U.S. announcement, China retaliated with a 34% tariff on American goods.
This reignited the U.S.-China trade war, with Europe and Asia signaling potential countermeasures.
Global trade tensions have rapidly intensified.
📊 Key Points:
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China: 34% retaliatory tariffs announced
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EU and Japan: Considering their own responses
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Global trade flows: Significant disruption risk rising
📉 Stock Market Suffers Worst Single-Day Drop Since 2020
The tariff shock hammered the U.S. stock market:
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S&P 500: Down 4.8%
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Nasdaq: Down 6%
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Dow Jones: Down 3.9%
It marked the worst single-day fall since the early pandemic crash in 2020.
Panic selling swept across all sectors.
🏦 Fed Takes a Cautious Stance on Interest Rates
With inflation expected to rise and growth projected to slow,
Federal Reserve Chair Jerome Powell stated that the Fed would remain cautious about adjusting interest rates.
Markets had hoped for a rate cut, but the Fed opted for a wait-and-see approach instead.
📎 Summary:
📉 Recession Scenario Becomes Real
JP Morgan has raised the probability of a U.S. and global recession to 60%.
🔥 Main Risk Factors:
If trade tensions worsen, a domino effect could drag both the U.S. and global economies into downturns.
📊 Labor Market Remains Resilient... For Now
In March, the U.S. nonfarm payrolls grew by 228,000 jobs, showing a strong labor market.
However, experts warn that if tariff impacts deepen, employment growth could falter.
📈 Inflation Set to Rise
Economists predict that the new tariffs could push
consumer price inflation up to 4% by year-end.
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Food, electronics, clothing: Price hikes expected
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Real purchasing power: Likely to decline
Higher prices could weigh heavily on ordinary consumers.
🌍 Where Is Global Trade Heading?
Several countries are considering retaliatory measures against the U.S.
This could disrupt global supply chains and lead to a downward revision in global growth forecasts.
🔎 Key Observations Ahead:
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WTO response to protectionism
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Possible reopening of U.S.-China negotiations
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Shifts in global investment sentiment
✅ Conclusion: 2025 U.S. Economy in a Perfect Storm of Volatility
As of April 4, 2025, the U.S. economy is facing:
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A policy shock from aggressive tariffs
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A market shock from stock crashes
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A sentiment shock from growing recession fears
In the coming weeks, close attention must be paid to monetary policy adjustments, trade negotiations, and consumer behavior.
💡 The future remains uncertain. But only those who prepare will survive.
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