The S&P 500 fell 4.8% Thursday in response to Trump's tariffs

Financial markets around the world reeled following President Donald Trump’s latest and most severe set of tariffs, and the U.S. stock market took the worst of it.

The S&P 500 fell 4.8% Thursday. The Dow Jones Industrial Average dropped 1,679 points, and the Nasdaq composite sank 6%.

Little was spared as fear flared globally about the potentially toxic mix of weakening economic growth and higher inflation that tariffs can create.

The S&P 500 fell 274.45 points, or 4.8%, to 5,396.52.

The Dow Jones Industrial Average fell 1,679.39 points, or 4%, to 40,545.93.

The Nasdaq composite fell 1,050.44 points, or 6%, to 16,550.61.

The Russell 2000 index of smaller companies fell 134.82 points, or 6.6%, to 1,910.55.

As investors watched the US stock market take its biggest one-day dive since the pandemic in 2020, the message from the White House to Wall Street was: "Trust in President Trump".

Trump himself said markets would "boom" under his new tariff scheme as the Dow Jones, Nasdaq and S&P plunged over the course of the day.

Twenty-four hours after Trump imposed minimum 10% import tariffs worldwide starting on 5 April, the US's key trading partners are mapping out their response.

Canadian Prime Minister Mark Carney retaliated with 25% levies on all vehicles imported across the border, lamenting that the close relationship with the US is "now over". In contrast, Mexican President Claudia Sheinbaum said her country would not retaliate in kind.

Meanwhile, the UK has drawn up a 400-page sample list of US goods that could face future tariffs in retaliation to Trump's tariffs, and though EU leaders are yet to present the bloc's official response, many have slammed the tariffs as "brutal".