Two days since the announcement of the tariff, Wall Street Plummets as U.S.-China Trade War Escalates: Market Reaction to Tariffs Shakes Global Economy. Since the onset of the COVID-19 pandemic, the Wall Street on April 5, 2025, experienced a catastrophic plummet, marking its most significant crisis. The S&P 500 dropped by 6 percent, while the Dow Jones Industrial Average fell by 2,231 points—a staggering 5.5 percent loss. This decline was recorded as China retaliates against newly imposed tariffs by President Donald Trump. This move by China intensifies fears of an impending global recession.