U.S. stock markets suffered another day of losses on Thursday after President Donald Trump escalated his tariff threats.
President Trump announced Thursday morning that he would impose a 200% tariff on all alcoholic products from European Union nations after a back-and-forth with the EU.
The Dow Jones Industrial Average, S&P 500, and Nasdaq all fell more than 1% on the day.
The Dow dropped more than 500 points to close at 40,849, while the Nasdaq declined 345 points.
The S&P 500 also saw a significant decline, sliding nearly 1.4% and pushing the index into its first market correction since 2023.
That term is reserved for when an index falls 10% or more from a recent high.
Over the past five days, the Dow and Nasdaq have each lost more than 3.5%, as uncertainty over U.S. economic policy continues to weigh on investors.
In recent days, President Trump has threatened tariffs on multiple countries — at times walking back those threats.
“It’s basically like a game of chicken that President Trump and America are playing with these other countries,” said Aaron Cirksena, founder of MDRN Capital. “Who’s going to blink first? Who’s going to make a concession first?”
President Trump has warned of an economic "transition period" but insists that Americans will ultimately benefit from his trade and economic agenda.
However, a new CNN poll shows that 56% of respondents disapprove of his handling of the economy.
