Stocks open lower as tariffs reality sets in

Markets on Thursday gave up some of the soaring gains clocked in the aftermath of President Donald Trump’s tariffs pause announcement as the reality set in of how far duties are still set to climb.

Markets on Thursday gave up some of the soaring gains clocked in the aftermath of President Donald Trump’s tariffs pause announcement as the reality set in of how far duties are still set to climb. 

The S&P 500 fell 2% in early trading. The tech-heavy Nasdaq dropped more than 2.6%. The Dow Jones Industrial Average pulled back about 1.8%, or more than 700 points.

Even with country-by-country tariffs now ostensibly on hold for 90 days, Trump’s plan still entails the United States’ average effective tariff rate rising to as much as 24%, as a baseline fee of 10% for all imports and 125% for ones from China snaps into place — suggesting the cost of imports are still likely to surge.

The president also still plans to impose “sectoral” tariffs on entire swaths of goods, including pharmaceuticals and lumber.

“We do not see the scenario as being as encouraging as markets do,” analysts with Citi wrote in a note Thursday morning, adding there was no guarantee the negotiations Trump touted as he announced his pause would result in deals or actually lower tariffs.

https://www.nbcnews.com/business/markets/stocks-open-lower-tariffs-reality-sets-rcna200576

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