Trump tariffs trigger panic as stock market uncertainty grips the nation and causes prices to soar

Democrats are slamming President Donald Trump after he announced a sweeping batch of new tariffs that they believe could upend the U.S. economy.

My fellow Americans, this is liberation day, Trump said at the Rose Garden event Wednesday afternoon. It was the first outdoor event he has held in the patch of grass outside of the Oval Office this year.   

April 2, 2025, will forever be remembered as the day American industry was reborn, the day Americas destiny was reclaimed, and the day that we began to make American wealthy again, he continued. 

Trump then went on to say that all countries trying to bring goods into the U.S. will pay at least 10 percent on imports. Individual tariff rates will also be implemented on specific countries, he said. 

Cambodia will be forced to pay a 49 percent tariff while Sri Lanka will be mandated to pay a 44 percent tariff, according to a sign printed out by the White House. 

As he made the announcement stock index futures began plummeting, signaling Wall Streets negative response to the news.

One financial analyst even told the New York Post, the new tariffs are going to be Armageddon-like.

Well, the stock markets closed, but the futures are tanking, Amy Klobuchar, D-Minn., said on the Senate floor following Trumps proclamation. 

Donald Trump signs an executive order implementing new reciprocal tariffs against trading partners in the Rose Garden of the White House in Washington, DC, USA, 02 April 2025. Trump has branded the day Liberation Day, though most economists expect U.S. consumers to foot the costs

Treasury Secretary Scott Bessent, House Speaker Mike Johnson, Vice President JD Vance, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth listen as Trump announces the tarrifs

Secretary of Commerce Howard Lutnick brings a chart of Reciprocal Tariffs to US President Donald J Trump

Democrats teed off on the Trump order in unison, with scores of lawmakers taking to social media to decry the new economic policy. 

The President is risking a recession with this national sales tax he calls tariffs—while needlessly alienating our closest allies, Senate Democratic Whip Dick Durbin wrote in a statement. 

President Trump seems enamored with tariffs, but hes going to have a heck of a time explaining how this is going to help reduce the cost of living for Americans.

The top Democratic senator on the Senate Financial Committee, Ron Wyden, also hammered Trumps plan. 

American families need relief from rising prices and stagnant growth, but instead, Donald Trump—with buy-in from Congressional Republicans—is administering economic poison to our economy, he said.

The Oregon Democrat said the tariffs are a tax on almost everything families buy.   

By raising prices of everyday essentials and hurting families budgets, Nevada Democratic Sen. Jackie Rosen wrote. 

Nevada families are already suffering from high costs on everything from housing, to groceries, to gas. Trumps sweeping tariffs are a slap in the face to hardworking Nevadans who will now have to bear the full brunt of these additional taxes. 

Democratic Senate Whip Dick Durbin warned that the tariffs could start a recession

The top Democrat on the Senate Financial Services Committee Ron Wyden called the effort economic poison

Republican Speaker Mike Johnson celebrated Trumps new policy. However, Democrats have sounded the alarm on the Republicans order, saying it could lead to economic turmoil 

Reacting to Trumps first Rose Garden address of his second term, Republicans backed the president to the hilt, celebrating the new tariffs as a means to protect U.S. consumers.

President Trump is sending a clear message with Liberation Day: America will not be exploited by unfair trade practices anymore, Speaker Mike Johnson wrote on X. 

The Republican attended the White House event alongside Trump and Vice President J.D. Vance.

These tariffs restore fair and reciprocal trade and level the playing field for American workers and innovators, Johnson continued. The President understands that free trade only works when its fair!

Whatever tariffs they impose on us, we will impose on them, Rep. Tom Tiffany, R-Wis., posted on X.  President Trumps reciprocal tariffs will bring back fair trade and put American workers first.  

Rep. Andy Biggs, R-Ariz., similarly posted: Thanks to President Trump, foreign nations can no longer take advantage of Americas generosity. 

Trump speaking at the Liberation Day event Wednesday 

President Trump is bringing back the American Dream, Rep. Diana Harshbarger, R-Tenn., wrote in a statement. 

Our taxpayers have been ripped off by foreign countries for far too long, but those days are over. President Trump is right to impose these reciprocal tariffs.

Rep. Elise Stefanik, R-N.Y., who recently had her bid to become U.S. ambassador to the U.N. scuttled wrote in a statement that Trumps new policies will strengthen American manufacturing and create millions of American jobs.  

For too long, Americans have suffered under unfair trade practices putting America Last, she wrote. We will not allow other countries to take advantage of us and we must put America and the American worker first.

The event was notably held at 4 pm ET, after the U.S. stock markets have closed for the day. 

Still, major futures indexes lost trillions of dollars worth of value after the announcement. 

The S&P 500 futures, Nasdaq 100 futures and Dow Jones Industrial Average futures were all down as of Wednesday evening.