The imposition by the United States of reciprocal tariffs as ordered by US President Donald Trump has sent shock waves to stock markets globally, and the worst may yet to come for equities.

This, as China made a harsh response to the US tariffs as Beijing imposed higher duties on imports coming from America.

The Dow dove 5.50%, or 2,231.07 points, to close the week at 38,314.86, the largest drop since June 2020. Meanwhile, the S&P 500 slipped 5.97%, or 322.44 points, to close at 5,074.08, the biggest fall since March 2020, also off more than 17% from its recent high.

For its part, the Nasdaq fell 5.82%, or 962.82 points, to 15,587.79, taking the index down 22% from its December record, entering into a bear market.

The sharp two-day drop in indices caused losses of more than $6 trillion, while nearly $10 trillion has been wiped from US markets since Trump’s inauguration.

In the local front, the Philippine Stock Exchange index (PSEi) declined by 1% to 6,084.19 points on Friday (April 4), despite the government reported lower inflation data in March 2025.

Philstocks Financial research manager Japhet Tantiangco said investors continued to digest Trump’s announcement and how these reciprocal tariffs would affect the global economy.

“Worries over the impact of the tariffs on global supply chain, international trade, and overall global economic performance caused investors to sell positions,” Tantiangco said.

Also, Mexican stocks went down by 4.87% and Argentine equities slid by 7% as last week came to a close.

CHINA’S RESPONSE

In retaliation, China imposed a 34% additional tariff on all imports from the US, or the same as Trump’s 34% reciprocal tariffs on Chinese imports to America.

The tariffs are set to go into effect next Thursday.

Beijing as called the US’ reciprocal tariffs one-sided “bullying,” adding that the levies violate international trade rules and harm China’s rights and interests.

On counter-tariffs from China, Trump said Beijing has “panicked” in its trade policy response to his administration’s recent tariff actions.

“CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!” Trump wrote on Truth Social.

PIXABAY PHOTO