Fear that Trump tariffs will spark recession slashes billions of dollars from US stock values

U.S. companies had billions of dollars in value wiped out after President Donald Trump slapped sweeping tariffs on foreign imports.

Virtually every sector suffered big losses Thursday as U.S. financial markets careened toward their biggest one-day drop since COVID-19 flattened the global economy five years ago.

Banks, retailers, clothing, airlines and technology companies were among the hardest hit, with consumers expected to cut spending if tariffs lead to higher prices for goods and services.

Many economists called the tariffs much worse than expected, and investors dumped shares in companies they predict will suffer most from what is effectively a business tax.

In many cases that tax will be passed on to consumers. If consumers pull back their spending because of higher prices, businesses will produce fewer goods and economic growth could stall or contract. Consumer spending makes up about 70% of economic activity in the U.S.

“This is a game changer, not only for the U.S. economy but for the global economy,” Olu Sonola, Fitch Ratings’ head of U.S. Economic Research, said in a report. “Many countries will likely end up in a recession.”

Here’s a breakdown of some of the market’s worst performing sectors and companies on Thursday.

Airlines

Airlines had been projecting a strong year for profits. However, if Americans are faced with higher prices for essentials, economists say that could put a crimp in their travel budgets.

United Airlines, down 11.6%

American Airlines, down 8.5%

Delta Air Lines, down 8.6%

Clothing and shoes

Most major shoe and clothing makers have their products made outside of the U.S., meaning they will have to pay a tariff, or import tax, on all the goods that are shipped back into the country for sale here.

Nike, down 10.4%

Under Armour, down 17.4%

Lululemon, down 11.1%

Ralph Lauren, down 15.6%

Levi Strauss, down 11.5%

Retailers

Big box and online retailers also import a massive amount of their inventory from outside the U.S.

Amazon, down 7%

Target, down 9.5%

Best Buy, down 14.8%

Dollar Tree, down 8.4%

Kohl’s, down 24.4%

Technology

Companies that make and sell computers, smartphones and other technology source many of their parts from abroad. Some manufacture their entire products overseas, meaning they will have to pay a tariff when those products are shipped back for sale to consumers.

Apple, down 8%

HP, down 13.1%

Dell, down 15.4%

Nvidia, down 6.3%

Banks

If the economy slips into a recession, households and businesses will be less likely to borrow money as demand for products and services decline.

Wells Fargo, down 7.5%

Bank of America, down 8.9%

JPMorgan Chase, down 5.7%

Restaurants

American consumers, feeling less confident about their financial futures this year, have already been pulling back on spending at restaurants as they tighten their budgets and prioritize only essential goods and services.

Starbucks, down 10.8%

Cracker Barrel, down 11.1%

Cheesecake Factory, down 7.3%

Automakers

Somewhat surprisingly, automakers didn’t get hit as hard most other sectors did on Thursday. That could be because most of Ford, GM and Stellantis’ steel and aluminum — which Trump previously announced tariffs on — already comes from the United States, reducing the direct impact the companies would feel from higher duties.

General Motors, down 3%

Ford, down 4%

Tesla, down 4.4%

Stellantis, down 7.9%