How Liberation Day upended markets: A timeline
It’s been a wild two weeks since ‘Liberation Day’ – when President Trump announced sweeping reciprocal tariffs on imports around the world, sending a jolt through global markets.
In the days that followed, investors were hit by rapid market swings, a wobbling bond market and surprise policy pivots. The S&P 500/ASX 200 tumbled nearly 8% in just one week, and the tech-heavy Nasdaq 100 saw even sharper falls before rebounding.
Here’s a day-by-day timeline of how events unfolded – what moved markets, how investors responded and why long-term thinking matters.
Note: All announcements referenced below are in US time.
Written By Annabelle Dickson
Prelude: Cracks were already forming before the tariff shock
- In the lead-up to 2 April, US and Australian equities were already under pressure. Since Trump’s inauguration on 20 January until the announcement on 2 April, the ASX 200 had declined 5.50% and the S&P 500 6.26%.
- Ahead of 2 April, US consumer sentiment had already sunk to a two-year low, while inflation expectation surged to three-decade highs1.
- Major US bank J.P. Morgan had raised the probability of a global recession to 40%2.
Wednesday 2 April: ‘Liberation Day’ unleashes global turmoil
- Trump announces sweeping new tariffs on ‘Liberation Day’.3
- A 10% baseline tariff on all imports is to take effect from 5 April, with Australia and the UK among select countries subject to this standard rate.
- Higher tariffs apply from 9 April to countries the White House deems to be engaging in unfair practices: EU 20%, China 34%, Vietnam 36%.
- A sectoral 25% tariff-rate applies to all cars made outside the US.
- Sentiment quickly sours during Trump’s speech; S&P 500 futures drop more than 3%4.
Thursday 3 April: Markets reassess the ‘Trump trade’
- Full market reaction hits on mounting global recession concerns. The VIX Index, a measure of volatility, soars 50.93% to a reading of 45.31.
- Nasdaq 100 plunges 5.41% as investors rotate out of rate-sensitive growth stocks, while the broader S&P 500 sheds 4.84%.
- ASX 200 slides -0.94%, after falling more than 2% intraday.
Friday 4 April: China retaliates
- China responds with 34% reciprocal tariffs on US imports from April 105.
- Nasdaq 100 drops another -5.82%.
- ASX 200 tumbles -4.23%, one of its worst days since the pandemic.
Saturday 5 April: Baseline tariffs take effect
- Trump’s 10% baseline tariff on nearly all countries officially comes into force.
Monday 7 April: Bond yields climb
- US markets open sharply lower; Nasdaq 100 falls as much as -4.91% intraday.
- A post on X (formerly Twitter), repeated on CNBC, claims Trump is considering a 90-day tariff pause, but this was denied by the White House6. The Nasdaq 100 makes a trough-to-peak recovery of nearly 10% before settling the day 0.18% higher, as investors traded the fake news.
- Trump threatens to impose an additional 50% duty on Chinese imports if Beijing doesn’t withdraw its 34% retaliatory tariff7.
- US 10-year yields spike as markets price in inflation risks and retaliation; rising from 3.99% on 3 April to 4.26% on 7 April.
Tuesday 9 April: Trump stuns markets with major reversal
- Trump posts on Truth Social: “BE COOL!” and “THIS IS A GREAT TIME TO BUY!!! DJT” in the morning US trading session8.
- Hours later, he announces a 90-day pause on higher tariff rates for countries that did not retaliate against US tariffs (baseline 10% remains).
- Major rally across US markets: Dow +7.87%; S&P 500 +9.52%; and Nasdaq 100 +12.16%. Gold advances 2.98%.
- However, Trump doubles down on China, announcing a 125% tariff from Wednesday (making it 145% in total), while China responds by increasing tariffs on US goods to 84%9.
- US 10-year bond yields rise to 4.40%.
Wednesday 10 April: ASX rallies, US pulls back
- ASX 200 jumps +4.54%, following the relief rally from Trump’s tariff pause.
- US markets give back gains overnight: Nasdaq 100 -4.31%; S&P 500 -3.46%; Dow -2.50%. Gold continues its surge, nearly 4%, as the US 10-year bond-yield rises to 4.49%.
Friday 11 April: Volatility begins to fade, gold rises to record high
- VIX Index falls -7.8% for the day and -42.9% from its weekly peak.
- ASX 200 ends -0.8%, after dropping as much as -2.4% intraday.
- US indices rebound: Nasdaq 100 +2.06%; S&P 500 +1.81%; and Dow +1.56%. Gold rises 1.58%, climbing to US$3,200 for the first time.
- China hits back at Trump’s tariff hike with 125% duties on US goods10.
- The Trump administration announces that consumer electronics like smartphones and laptops will be excluded from reciprocal tariffs – a move that benefits Apple, Samsung and Nvidia11.
Monday 14 April: Volatility subsides
- US stocks rise after market commentators suggest Trump is softening some of his most extreme tariff proposals. Trump and his aides indicate that Chinese-made and other electronics imports would be reclassified to face a 20% tariff instead of 145% in China’s case 12.
- He also expresses support for the auto sector, saying he’s looking to “help some of the car companies” affected by the proposed 25% import tax¹³.
- Dow is +0.78%, the S&P 500 +0.79% and the Nasdaq-100 +0.64%. The VIX tumbles 17.76% to a reading of 30.89 as market gloom continues to subside.
- The S&P/ASX 200 rises 1.34% before US markets opened for trading.
Riding out the noise
Over the past two weeks, we’ve seen just how quickly markets can move. But history reminds us that volatility is nothing new and waiting for the storm to pass can come at a steep opportunity cost.
As we highlighted in our analysis on market timing, the best returns often occur in the 5-20 days after a market bottoms; windows no one can reliably predict.
For long-term investors, the key lesson is to stay the course14. As billionaire investor Ken Fisher famously said: “Time in the market is more important than timing the market.”
References:
1. Bloomberg – US Consumer Sentiment Sinks as Tariffs Drive Price Expectations
2. JPMorgan Global Research – The probability of a recession now stands at 40%
3. BBC – Which countries have been hit by latest US tariffs?
6. CNN – How actual ‘fake news’ caused a market whiplash
7. Politico – Trump threatens additional 50 percent tariffs on China
8. USA Today – Donald Trump called it a great time to buy. Hours later, stock market jumped
9. CNBC – Trump tariffs: ‘Do not retaliate and you will be rewarded,’ White House says
10. Reuters – China raises duties on US goods to 125%, calls Trump tariff hikes a ‘joke’
11. CBC/Associated Press – Trump administration to exclude smartphones and computers from latest tariffs
12. CNBC – Dow jumps 300 points, S&P 500 closes higher as tech shares rise after tariff exemptions
13. CNBC – Auto stocks rise as Trump says he wants to ‘help’ some car companies
14. Fisher Investments’ Founder Ken Fisher: Time in the Market, Not Timing the Market, Matters More.