Stocks Tank After Hours As Trump Announces 'Liberation Day' Tariffs

U.S. stocks tanked in after-hours trading after President Donald Trump announced tariffs on trading partners.

Concretely, the ETF that tracks the S&P 500 plummeted by more than 2%, while the one doing the same with the Nasdaq 100 fell by over 3%. The Dow Jones Industrial Average ETF tanked as well.

Speaking at the White House, Trump said the policy is "kind reciprocal" and warned that he could have been much harder on several countries. China and Vietnam are among the ones impacted the most, with 34% and 32% tariffs, respectively.

On the other end of the spectrum are Colombia, Brazil, Chile, Australia and Turkey, which are seeing a 10% tariff. The figure for the European Union is 20%, and 17% for Israel.

According to NBC News, the Trump administration is basing the rates on how much other countries tax U.S. exports "including currency manipulation and trade barriers."

"For years, hardworking American citizens were forced to sit on the sidelines as other nations got rich and powerful, much of it at our expense. But now it's our turn to prosper," Trump said while announcing the tariffs.

However, a new analysis shows that lower-income Americans will be affected the most by the wide-ranging tariffs. Concretely, the analysis by the Yale Budget Lab concluded that the lowest income households could see their disposable income drop by 5.5% if other countries retaliate with 20% tariffs.

Figures are reduced as income grows, with the richest households seeing a potential 2.1% drop. However, that figure still amounts to $9,500 per household among the richest tenth of the population. No one would see their disposable income grow as a result of the tariffs, according to the analysis.