In April 2025, President Trump announced sweeping tariffs on imports from nearly all trading partners, including a 34% tariff on China and 20% on the EU. This triggered China’s retaliatory measures, causing U.S. stock markets to plunge sharply, with the S&P 500 crashing about 10% over two days and erasing all gains since the 2024 election by late April. The tariffs severely impacted technology and manufacturing firms, while economists warned of increased recession risks and inflation. A 90-day tariff pause led to a partial market rebound, but volatility persisted. Throughout 2025, Trump’s policies drove the market’s biggest swings, with investors adopting strategies like the 'TACO trade' amid ongoing uncertainty.