According to multiple major news outlets, the U.S. stock market experienced a staggering loss of $4 trillion in value, a dramatic downturn attributed to President Donald Trump’s aggressive tariff policies.

This sharp decline, centered around the S&P 500’s drop from its peak last month, has reignited concerns about an impending economic slowdown as investors grapple with the uncertainty of Trump’s trade agenda.

Reuters reported that the S&P 500 fell 2.7% on Monday alone, marking its largest single-day decline of the year, while the Nasdaq Composite slid 4%, its steepest drop since September 2022.

The sell-off erased over $4 trillion from the S&P 500’s market value since its February 19 high, bringing it perilously close to a 10% correction threshold.

Analysts pointed to Trump’s tariffs on key trading partners—Canada, Mexico, and China—as the primary catalyst, noting that these policies have “spooked investors” and fueled fears of a broader economic downturn.

“We’ve seen clearly a big sentiment shift,” Ayako Yoshioka, senior investment strategist at Wealth Enhancement, told Reuters. “A lot of what has worked is not working now.”

CNN Business highlighted the scale of Trump’s tariff gamble, noting that the president has targeted $1.4 trillion in imported goods from America’s three largest trading partners.

This move, described as “a far more aggressive use of his favorite economic weapon” than during his first term, has raised alarms about potential stagflation—a toxic mix of slowing growth and rising inflation.

“This is a huge gamble,” Mary Lovely of the Peterson Institute for International Economics told CNN. “It’s a recipe for slowing down the economy and increasing inflation.”

The Wall Street Journal echoed this sentiment in a scathing op-ed titled “The Dumbest Trade War in History,” arguing that Trump’s justification for tariffs on Canada and Mexico “makes no sense” and could lead to economic disaster.

Bloomberg added context to the market’s reaction, reporting that the S&P 500’s post-election rally—initially worth $3.4 trillion since November 5—has been entirely wiped out as tariffs took effect.

The outlet noted a volatile trading session on March 4, with stocks tumbling shortly after Trump confirmed new 25% tariffs on Canadian and Mexican imports and a 20% duty hike on Chinese goods.

Investors, who had initially cheered Trump’s pro-growth promises like tax cuts and deregulation, are now rethinking their optimism.

“Every time you have structural change, you’re going to have uncertainty and friction,” Michael O’Rourke, chief market strategist at JonesTrading, told Reuters. “It’s understandable people are starting to be a little concerned and starting to take profits.”

The New York Times underscored the global ripple effects, reporting that markets in Asia and Europe also slumped as retaliatory measures from Canada, Mexico, and China loomed.

China has already targeted U.S. agricultural exports, while Canada and Mexico are poised to respond, raising the specter of a full-blown trade war.

Economists quoted by the Times warned that prolonged conflict could “dent global growth and accelerate inflation,” potentially handcuffing the Federal Reserve’s ability to manage the economy.

As reported by The Straits Times, despite the White House’s insistence that the economy remains robust, investor confidence is wavering.

The administration argues that tariffs will ultimately revive manufacturing and spur growth, but experts remain skeptical.

“The Trump administration seems a little more accepting of the idea that they’re OK with the market falling, and they’re potentially even OK with a recession in order to exact their broader goals,” Ross Mayfield of Baird told The Straits Times.

Meanwhile, the Cboe Volatility Index, a key measure of market unease, hit its highest closing level since August, per Reuters.

The tech sector bore the brunt of Monday’s losses, with The Straits Times noting a 4.3% drop in the S&P 500’s technology segment.

Heavyweights like Apple and Nvidia fell about 5%, while Tesla plummeted 15%, shedding over $125 billion in market value in a single day, according to The Times of India.

Even with these losses, stock valuations remain above historical averages, with the S&P 500 trading at 21 times next year’s earnings estimates compared to a long-term average of 15.8, per Reuters.

The financial world watches anxiously as Trump plows ahead with his tariff strategy.

CNN reported that the Federal Reserve might delay interest rate cuts if tariffs drive inflation expectations higher, tightening financial conditions further.

With mounting uncertainty and no clear resolution, the $4 trillion wipeout may be just the beginning of a turbulent economic chapter.

“Until they define a win politically and economically, it’s going to be like this every week,” Edward Al-Hussainy of Columbia Threadneedle Investments told Reuters. For now, Wall Street—and Main Street—brace for what comes next.