What Triggered the April 2025 Stock Market Crash?

Trump’s MAWA Tariff Policy Explained

On April 2, former President Donald Trump launched a campaign called “Make America Wealthy Again (MAWA).” It included:

• 10% Base Tariff on all imported goods
• Reciprocal Tariffs based on trade imbalance

As a result, countries like South Korea faced 35% tariffs. China was hit with 104%.
👉 Source – The Times

Immediate Fallout in the Markets

How the U.S. Market Reacted

Between April 2 and April 8:

• S&P 500 dropped 12.2%
• Dow Jones reversed a 4.05% rally to close down 1.6%
  👉 Source – MarketWatch

Investors lost billions. For example, Dave Portnoy reportedly lost 15% of his net worth.
👉 Source – NYPost

Tariffs Ripple Through Businesses and Consumers

Global Corporations Take a Hit

Companies that rely on global trade faced serious losses:

• TSMC dropped limit-down after a 42% tariff
• Apple, Tesla, Amazon tumbled due to supply chain disruption

Prices Climb for Consumers

As tariffs increased costs, consumers saw price hikes in:

• Groceries
• Electronics
• Clothing
• Appliances

Moreover, building U.S. factories will take time. Thus, benefits may not arrive for years.

Worldwide Response to the U.S. Tariffs

Retaliatory Tariffs and WTO Complaints

• China imposed 84% retaliatory tariffs and filed a WTO complaint
• Canada and the EU prepared countermeasures
  👉 Source – AP News

Global trade instability followed swiftly, sparking fears of a new trade war.

What Do Experts Say About the Fallout?

Rising Risk of Recession

• JP Morgan: U.S. recession chance raised to 60%
• Moody’s: GDP may dip below 0% in 2025
• Federal Reserve Chair Powell: Long-term inflation concerns persist

Business Leaders Sound the Alarm

• Mark Cuban: Compared outcome to 2008 financial crisis
  👉 Source – Economic Times
• Elon Musk: Advocated for zero tariffs between U.S. and Europe
  👉 Source – Reuters

Is This Just About Trade—or Economic Power?

Some believe these tariffs aim to pressure global firms into relocating factories to the U.S.
Many companies are now:

• Researching U.S. real estate
• Considering tax incentives
• Planning domestic operations

If this works, “Made in USA” may rise—but it comes with global consequences.

Final Thoughts: Navigating the Global Trade Shift

The stock market crash in April 2025 highlights how fast the economy can react to policy changes.
While the U.S. hopes to boost industry, the cost for consumers, global firms, and market stability is high.

Whether this is a power play or protectionism, one thing is clear: the world is watching closely.

📘 Glossary

Tariff – A tax on imported goods, often used to protect local industries.
Reciprocal Tariff – Tariffs adjusted based on trade imbalances.
Recession – A long-lasting decline in economic activity.
Supply Chain – The system of production and delivery from source to customer.
GDP – Total value of goods and services in a nation.