US stocks fell sharply on Wednesday as markets braced for a fresh wave of trade tariffs expected from the Trump administration. The S&P 500 dropped 1.12% to close at 5,712, while the Dow shed 133 points. The Nasdaq saw the steepest fall, slipping more than 2%, dragged down by major tech names.
Technology and auto stocks hit hardest
The day’s losses were led by technology and auto stocks. Tesla plunged nearly 6%, General Motors fell 3.2%, and Stellantis dropped 3.5%. Nvidia, Alphabet, Meta, and Amazon all posted losses of more than 2%. Tesla’s decline came amid weak European sales figures and renewed concerns over CEO Elon Musk’s close ties to the Trump administration.
Tariff uncertainty weighs on sentiment
The auto sector was especially volatile after the White House confirmed that President Trump would announce new tariffs on imported vehicles. That announcement is set for later Wednesday afternoon, ahead of broader trade measures planned for next week.
President Trump has teased April 2 as “liberation day,” when a full slate of reciprocal tariffs is expected. Although recent comments suggest a more “lenient” approach, investors remain cautious. Economists warn that the tariffs could push up vehicle prices by as much as $12,000 for some models, while also straining automakers’ North American supply chains.
Commodities and the dollar
Brent crude is trading 1.37% higher at US$74.02 a barrel.
Spot gold is trading 0.02% lower at US$3,018.81 an ounce.
One Australian dollar is buying 62.98 US cents.
The SPI futures are pointing to a 37 point fall.
