Dow Plunges 1,178 Points After Trump's 'Liberation Day' Tariffs—JD Vance Says 'We Won't Fix Things Overnight'

The stock market had a meltdown on April 3, and no, it wasn't because of a tech bubble or a banking crisis. Instead, President Donald Trump's sweeping new tariffs sent Wall Street into full-blown panic mode.

The Dow Jones Industrial Average plunged 1,178 points—down 2.7%—as investors scrambled to assess the fallout from what Trump dubbed "Liberation Day" a day earlier.

Markets Rattle as Trump's Tariffs Shake Up Global Trade

The new tariffs are anything but subtle. Nearly all imports into the U.S. will now face a minimum 10% tariff, with some countries hit even harder. China is looking at a brutal 54% tariff on its exports, the European Union isn't far behind at 20%, and Japan is getting slapped with 24%.

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Close allies like Israel weren't spared, with tariffs set at 17% on its goods. Trump defended the move, calling it a long-overdue correction to what he claims are unfair foreign trade practices. "These foreign companies charge us ridiculous tariffs, they manipulate currencies—it's time we fight back," he said during his announcement.

Meanwhile, Wall Street traders weren't exactly popping champagne. Investors are worried about rising costs for businesses and potential retaliation from key trading partners. The S&P 500 also tumbled 2.1%, while the Nasdaq Composite dropped 2.8%.

As stocks plunged, Vice President JD Vance appeared on "Fox & Friends" to defend the administration's strategy. When host Lawrence Jones pointed out the disconnect between Wall Street's panic and factory workers cheering at the White House, Vance chalked it up to long-term vision.

"A lot of people got rich off American jobs moving overseas, but American workers didn't," Vance said. "They finally see a president who's standing up for them."

Jones pressed him on concerns from working-class Americans who fear price hikes on everyday goods. Vance admitted there could be short-term pain but insisted the administration is working to lower energy costs and deregulate industries to help offset the impact.

"We know people are struggling. We're fighting as quickly as we can to fix what was left to us, but it's not going to happen immediately," Vance said. "We won't fix things overnight."

This isn't the first time the U.S. has gone all-in on tariffs.

Back in 1930, the infamous Smoot-Hawley Tariff Act aimed to protect American farmers but instead helped to fuel the Great Depression as other nations retaliated. More recently, Trump's 2018 steel and aluminum tariffs triggered trade disputes with China, which led to economic uncertainty.

Economists warn that today's tariffs could have similar effects, raising costs for businesses and consumers. Major corporations reliant on imports—including Apple AAPL, Walmart WMT, and Ford Motor F—are bracing for higher expenses that could trickle down to shoppers.

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