The U.S. stock market is reeling from President Trump's newly announced tariffs. Major indices like the Dow Jones have seen massive declines, creating fears of an economic downturn.

New tariffs on imports from the EU, Japan, and China have escalated trade tensions. Heavy levies are expected to increase costs and drive inflation, which could hurt economic growth and consumer spending, leaving investors in turmoil.

The Trump administration defends tariffs as a means to correct trade imbalances and stimulate job growth. However, this strategy faces criticism from various sectors saying it could lead to a nationwide recession and impact daily consumers.

Despite dramatic declines, stocks recovered slightly after Treasury Secretary reassured investors of ongoing tariff negotiations. However, volatility remains high as market participants weigh the long-term consequences of these trade policies.

Industries like automotive and technology are particularly vulnerable to tariffs, facing severe stock declines. Major companies like Tesla and Nvidia are squeezed by supply chain challenges while trying to maintain profitability in a changing market.

China's retaliatory tariffs add fuel to the already tense trade war. Economists warn that sustained conflict could lead to reduced trade volumes, price increases for consumers, and slower economic growth across the globe.

As earnings season approaches, investors will watch how major firms adapt to tariffs. The Federal Reserve may respond with interest rate cuts if economic pressure mounts, making the future of U.S. economic policy increasingly uncertain.