Major indexes continued to sell off Friday, as the stock market responded to retaliatory measures from China, striking back at President Donald Trump's barrage of "reciprocal" tariffs.
The stock market dived Thursday after Trump tariffs were announced late Wednesday. The major indexes all broke below recent lows, suffering their worst one-day losses since the onset of the coronavirus pandemic in 2020. On Friday, the Dow, S&P 500 and Nasdaq futures pointed to further, sharp losses as China hiked tariffs on U.S. goods by 34% starting on April 10, according to state media.
China's trade war response comes after Trump levied a 34% tariff hike on Chinese goods, bringing his total levies against China-made products to 54%. China also imposed export controls on some rare-earth items. After Trump hiked tariffs on China earlier this year, Beijing responded with modest tariffs on some U.S. goods.
The European Union and many other trading partners are mulling retaliation as well. Trump said Thursday that he's open to negotiations with other countries, but given other countries' generally low tariffs vs. the U.S., and Trump's focus on trade surpluses, it's unclear what concessions they could offer.
Dow Jones Futures Dive As China Retaliates Vs. Trump Tariffs; Jobs Report, Powell Due
Meanwhile, the March jobs report showed stronger-than-expected hiring and a slight uptick in unemployment. Federal Reserve Chair Jerome Powell also on Friday signaled that policymakers won't rush to offset the impact of Trump tariffs because "the economy is still in a good place," despite high uncertainty and growing downside risks.
The breadth of the Trump tariffs means that few sectors are not getting hit. On Thursday, the damage to stocks was broad. Only a handful of stocks held up during Thursday's stock market with the carnage poised to continue Friday.
S&P 500, Dow Stocks Getting Hit
The destruction in the S&P 500 was nearly all encompassing early Friday, with only 5% of index stocks showing even modest gains.
Leading the losses on the index were GE Healthcare Technologies and Carnival, falling around 16% and 4.6%, respectively, during Friday's stock market action.
S&P 500 component Arista Networks declined nearly 10%. Oil and gas play, and a Warren Buffett favorite, Occidental Petroleum also sank 7.7%. U.S. oil prices plunged to their lowest level in four years Friday, reflecting the demand destruction implied in the ramping U.S. vs. world trade war, as well a pending production increase among Organization of Petroleum Exporting Countries.
Starbucks was also among the bottom of the S&P 500 index Friday, with a 7% decline Friday.
Dow stock Nike rallied 3%, along with several other apparel-related stocks, Friday following Trump announcing that Vietnam, a key supplier for many companies, could be set to negotiate an escape from the president's 46% tariffs on the country.
Retail giant and Dow Jones component Walmart slipped 4.8% while S&P 500 component Target edged up 1.5% on Friday. Both stocks booked substantial declines on Thursday.
Fellow Dow stocks Apple and Amazon.com sank 7.3% and 4.2% on Friday. Both stocks dropped around 9% on Thursday. The iPhones produced for the U.S. market in China face a 54% tariff while iPhones produced for the U.S. in India will have a 26% reciprocal tariff. Microsoft declined 3.6% Friday.
Wedbush Securities estimated Thursday that "the vast majority of iPhone production is out of China, over 50% of Mac products, and 75%-80% of iPads."
Meanwhile, EV giant Tesla, a S&P 500 stock, plummeted 10.4% Friday. Tesla manufactures vehicles in the U.S. but is reliant on global supply chains, including China.
Also in the auto space, General Motors fell 3.7% while Ford moved up 0.5%. Used car seller Carvana sank 10.7% Friday after falling nearly 20% on Thursday. CarMax declined 1% on Friday.
Can Trump Tariffs Push These Stocks Down?
Not many stocks held up Thursday in the face of Trump's tariffs and fears of a potential global recession. However, defensive names among Dow and S&P 500 components included Procter & Gamble, up 1.7% Thursday. PG stock dropped 5% Friday.
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S&P 500 component MarketAxess, which provides electronic trading of U.S. and European bonds, jumped early before falling 1.5% Friday.
U.K.-based pharma stock AstraZeneca also bucked the broader stock market trend on Thursday, jumping 2.4%. However, on Friday, AZN gave back those gains, falling 7.4%.
Philip Morris International, which is one of the top S&P 500 stocks in 2025, fell 7.1% Friday after jumping 3.8% on Thursday.
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Among classic S&P 500 defensive stocks on Thursday, Lamb Weston and Molina Healthcare advanced 10.2% and 7.6%, respectively. American Water Works jumped 4% and SBA Communications gained 5.3%.
American Water Works moved higher early before falling 3.2% Friday while SBAC stock also gained at the opening bell before slipping 4.8%. Meanwhile, Lamb Weston fell 1% and Molina Healthcare dropped 1.8%.
Auto-parts chain AutoZone declined 4.5% Friday after edging up 0.16% on Thursday. Auto parts are expected to be a winning segment amid the upgraded trade war, as new car prices rise, and Americans pay to keep their older cars on the road for longer.
Trump Tariffs In a Nut Shell
The Trump tariffs announced Wednesday are as follows: Globally, there's a 10% tariff baseline, but much-higher tariffs on China, Taiwan, Japan, Europe and other close U.S. trading partners. New tariffs on China imports are set at 34%, with Taiwan facing a 32% tariff, the European Union is set at 20%, Japan at 24%, India at 26% with Mexico and Canada both at 25%. The Trump tariff on foreign-made autos will to 25% effective immediately.
On Wednesday, Trump said he will continue to exempt goods compliant with the United States–Mexico–Canada Agreement (USMCA) from the 25% tariffs imposed on Canada and Mexico. Trump added he won't impose "reciprocal" tariffs on Canada and Mexico for now. So a large number of Canadian and Mexico goods will not face any U.S. tariffs.
Buckle Up: What Trump Tariffs Mean For The U.S. Economy And Stock Market
The baseline tariffs kick in on April 5, with the higher "reciprocal" tariffs starting April 9.
President Trump also signed an executive order closing the de minimis loophole, as of May 2, opening the door for the U.S. to impose tariffs on low-value packages. Trump has already hiked tariffs on steel, aluminum, all China imports and many goods from Canada and Mexico. New 25% auto tariffs hit on Thursday.
The breadth of the tariffs means that few sectors are not getting hit.
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