Dow Jones plunges more than 1,500 points as stock market reacts to Trump tariff shock

The Dow Jones Industrial Average plunged 1,581 points, or 3.8%, to 40,634, in morning trade Thursday as spooked investors tried to assess the impact of the latest round of Trump administration tariffs.

President Trump on Wednesday announced a 10% baseline tariff on all U.S. trading partners and increased levies on dozens of countries that charge higher taxes on American exports. Mr. Trump has said the goal is to make global commerce more fair, spur companies to expand in the U.S. and generate federal revenue. 

But experts warn that sharply ramping up tariffs on imports, coupled with any retaliatory measures from other nations, could drive up inflation, dampen spending by consumers and businesses, and hurt economic growth.