Trump's Import Tariffs Spark Market Panic, S&P 500 Loses $4 Trillion

President Donald Trump's plan to impose import tariffs has triggered panic among investors, leading to a massive stock market sell-off. As a result, the S&P 500 lost $4 trillion (approximately Rp 65,200 trillion at an exchange rate of Rp 16,300) over the past month.

This move has significantly increased uncertainty for businesses, consumers, and investors. Trump has imposed high tariffs on multiple countries, including Canada, Mexico, and China, further fueling market concerns.

S&P 500 and Nasdaq Plummet Sharply

Stock market sell-offs deepened on Monday (March 10, 2025). The S&P 500 dropped 2.7%, marking its biggest single-day decline this year. Meanwhile, the Nasdaq Composite plunged 4%, its worst daily drop since September 2022.

By Monday’s closing, the S&P 500 had fallen 8.6% from its record high on February 19, translating to a $4 trillion loss. The tech-heavy Nasdaq has now lost over 10% from its December 2024 peak.

President Trump has yet to predict whether his trade policies could push the U.S. into a recession, despite growing concerns among investors.

"The uncertainty created by the trade war with Canada, Mexico, and Europe has forced businesses to rethink their strategies," said Peter Orszag, CEO of Lazard, as quoted by Reuters on Tuesday (April 11, 2025).

"Tensions with China are understandable, but targeting Canada, Mexico, and Europe is puzzling. If this is not resolved soon, it could severely impact the U.S. economy," Orszag added.

Major Corporate and Risk Asset Impact

Economic uncertainty has also hit major corporations. Delta Air Lines announced on Monday that it is cutting its first-quarter profit estimate by half, causing its stock to plunge 14% in after-hours trading. Delta CEO Ed Bastian blamed the declining economic outlook in the U.S. for the company’s financial struggles.

Investors are also watching whether lawmakers will approve a funding bill to prevent a partial government shutdown. Meanwhile, U.S. inflation data set to be released on Wednesday (March 12, 2025) remains a key focus for the markets.

"The Trump administration appears unbothered by the stock market decline, and they may even be willing to accept a recession to achieve their broader economic goals," said Ross Mayfield, investment strategist at Baird.

The S&P 500 had previously gained over 20% in both 2023 and 2024, driven by megacap technology stocks such as Nvidia and Tesla. However, on Monday, the S&P 500 tech sector plummeted 4.3%.

Apple and Nvidia both dropped around 5%, while Elon Musk's Tesla plunged 15%, erasing $125 billion from its market value. Other risk assets were also affected, with Bitcoin sliding 5%.

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