Markets Tank After Trump Confirms More Tariffs: Here's What Wall Street Is Saying

by Erica Kollmann Benzinga Staff Writer

Stocks fell sharply Monday after President Donald Trump announced plans to impose 25% tariffs on imports from Canada and Mexico and an additional 20% tariff on goods imported from China, beginning Tuesday. Here's a look at reactions from Wall Street insiders and experts:

The Kobeissi Letter pointed to a dramatic drop in the Dow Jones index of more than 1100 points at one point, after opening Monday's session up 300 points.

The account posted a chart on social media showing the magnitude of Trump's tariff increases, which it said will bring the U.S. average effective tariff to as high as 20% or more.

As the trade war ramps up, the US average tariff rate is set to rise to levels not seen since the Great Depression.

Currently, the US average effective tariff rate is set to rise as high as 20% or more.

This does not even include the potential 100% tariff on BRICS countries. pic.twitter.com/c0S2PB6mvr
— The Kobeissi Letter (@KobeissiLetter) March 3, 2025

Economist Peter Schiff warned that the higher tariffs would do more harm to the United States than to the countries they are imposed upon.

It's ridiculous for anyone to claim that foreign nations have more to lose from a trade war than the U.S. Tariffs are taxes on imports. The U.S. is more dependent on imports than any other nation. Therefore, the U.S. has more to lose from a trade war than any other nation!
— Peter Schiff (@PeterSchiff) March 3, 2025

Others were more optimistic about the new trade policies, including Anthony Pompliano, who highlighted Taiwan Semiconductor Manufacturing Company Ltd.'s TSM earlier announcement of a $100 billion investment in the United States.

To all the people saying tariffs don't work, here is TSMC saying they are going to invest $100 billion in the US, build 5 new facilities, and create 20,000 American jobs.

Probably just a coincidence. pic.twitter.com/t2cbtb9kMM
— Anthony Pompliano 🌪 (@APompliano) March 3, 2025

Chamath Palihapitiya, entrepreneur and CEO of Social Capital, said that a decline in asset prices, including stocks and homes, could actually benefit President Trump because many of his supporters are young and "asset-light."

1. Trump is more popular with young people than old people. Most young people don't own stocks or homes (aka they are asset-light).

2. Trump is also more popular amongst working and middle class folks. Most of these folks are also asset-light.

It stands to reason that a fall…
— Chamath Palihapitiya (@chamath) March 3, 2025

Markets React:

All 3 major indices ended Monday's session firmly red as traders digested President Trump’s tariff announcements.

The SPDR S&P 500 ETF Trust SPY, tracking the S&P 500, closed down 1.75% at $583.77 and the Invesco QQQ Trust QQQ, tracking the Nasdaq 100 index, ended the session 2.14% lower at $497.30.

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