Trump’s “Liberation day” Tariffs Trigger Market Panic; Colorado Reps Offer Mixed Reactions
Sweeping tariffs ignite fears of a global trade war,sending shockwaves through wall Street and prompting diverse responses from Colorado’s congressional delegation.
April 03, 2025 10:42 AM UTC
President Donald Trump’s declaration of sweeping tariffs on goods from virtually every nation, including close allies, sent the stock market into a nosedive on Thursday, April 3, 2025. The move, dubbed “Liberation Day” by the Trump governance, has been widely criticized as a reckless gamble that could cripple the U.S. economy.
CNBC reported that the market reacted swiftly and negatively to the news, with major indices plummeting. The Dow Jones Industrial Average, a key indicator of the U.S. economy’s health, suffered a significant blow.
Stocks nosedived Thursday sending the S&P 500 back into correction territory, after President Donald Trump unveiled sweeping tariffs of at least 10% and even higher for some countries, raising the risks of a global trade war that hits the already sputtering U.S. economy.
— CNBC
The scale of the selloff was stark, reminiscent of economic downturns of the past.
The broad market index dropped 4%, putting it on track for its worst day as September 2022. The Dow Jones Industrial Average tumbled 1,500 points, or 3.5%, while the nasdaq Composite fell 5%. The slide across equities was broad, with decliners at the New York Stock Exchange outnumbering advancers by six to one.
— CNBC
The tariffs, which impose a minimum of 10% duty on goods from most countries, have sparked outrage among U.S. allies, many of whom see the move as a betrayal of long-standing partnerships.
President Donald Trump unveiled on Wednesday sweeping tariffs of at least 10% and even higher for some countries, raising the risks of a global trade war that hits the already sputtering U.S. economy.
— CNBC
Global Reaction: Dismay and Potential Retaliation
The Washington Post highlighted the shock and frustration from key U.S. allies.
“The administration’s tariffs have no basis in logic, and they go against the basis of our two nations’ partnership,” said Australian Prime Minister Anthony Albanese, whose country got off relatively lightly with a 10 percent blanket duty. “This is not the act of a friend.”
— Anthony Albanese, Prime Minister of Australia
The European Union, facing a steeper 20% tariff, has threatened retaliatory measures if negotiations with Washington fail.
“The European Union, which was hit with a 20 percent blanket tariff, is ready to respond if talks with Washington fail, said the head of the E.U. executive branch, European Commission President Ursula von der Leyen.
“There seems to be no order in the disorder. No clear path through the complexity and chaos,” she said in a statement describing the tariffs as a “major blow.”
— Ursula von der Leyen, President of the European Commission
the potential for a full-blown trade war raises concerns about rising consumer prices, disrupted supply chains, and economic instability, echoing the trade conflicts of the 1930s that exacerbated the Great Depression.
| Country/Region | Tariff Rate | Potential Impact |
|---|---|---|
| Australia | 10% | Strain on diplomatic relations; potential impact on agricultural exports to the U.S. |
| European Union | 20% | Significant disruption to transatlantic trade; retaliatory tariffs on U.S. goods. |
| China | Variable (Increased) | Further escalation of existing trade tensions; potential for currency manipulation. |
| Canada & Mexico | Variable (Increased) | Damage to USMCA trade agreement; disruption to integrated North American supply chains. |
Administration’s Response: “Ride Out the pain”
Despite the market turmoil, Vice President J.D.Vance urged Americans to remain patient and trust the administration’s long-term vision.
“What I ask folks to appreciate,we will not fix things overnight. [Pols emphasis] Joe Biden left us with largest peacetime debt and deficit in peacetime in America’s history.you don’t fix that overnight.We are fighting as quickly as we can to fix what was left to us,” Vance continued. “It will not happen instantly. If we pursue deregulation and cost-reducing policies, people will see in their pocket book and benefit from the fact that foreign countries can’t take advantage of us, and jobs will be more secure.”
— J.D. Vance, Vice President of the United States
Vance’s comments echo a familiar theme of blaming the previous administration for current economic woes, while promising eventual prosperity through deregulation and protectionist trade policies. This approach faces skepticism from economists who warn of the potential for immediate and long-lasting damage from the tariffs.
Colorado’s Congressional Delegation Divided
The response to the tariffs has been split along party lines in Colorado’s congressional delegation. Rep. Lauren Boebert, a staunch Trump loyalist, amplified support for the tariffs on social media, reposting praise from conservative commentators.
However, other members of the delegation have expressed concerns. Rep. Gabe Evans, considered a vulnerable Republican in a competitive district, attempted to downplay the potential negative impacts of the tariffs, drawing criticism for his analogy.
“What we saw the President do this afternoon was implement reciprocal tariffs, which means that if they have a tariff on us, then we have a tariff back on them, but if they lower their tariffs or get rid of their tariffs, then we lower or get rid of our tariffs as well,” he said. “I’m a big believer in free trade, but free trade has to be fair trade as well.”
— Rep. Gabe evans (R-CO)
Evans’ attempt to frame the tariffs as “reciprocal” has been challenged by economic analysts, who point out that many of the tariffs are unilaterally imposed, not based on existing tariffs charged by other countries.
He likened it to a pool game, with Wednesday’s broad announcement as the rack break. [Pols emphasis] “It seems like everything’s in flux, but at the end of the day, I am absolutely confident that by getting back to free and fair trade practices… that will ultimately bring down the prices of goods for all Americans.”
— Rep. Gabe Evans (R-CO)
evans elaborated on his analogy, comparing the current economic situation to the chaotic moment after breaking the rack in a game of pool.
EVANS: I liken it to a game of pool. You start off the game, the balls are all neatly racked, and then you, you break the rack. And it looks like the balls are going everywhere but then a good pool player is actually able to get the result that they want, um, as an inevitable result of being able to sink the balls in the different pockets. And so, I think that’s where we’re at right now…
— Rep. Gabe Evans (R-CO)
critics argue that Evans’ analogy is tone-deaf, given the real-world consequences that the tariffs could have on American businesses and consumers. the implication that a trade war, with all its potential for economic devastation, is merely a game is unlikely to resonate with constituents facing rising prices and job insecurity. Just as a bad break in pool can lead to losing the game, these tariffs could have irreversible economic effects.
The Road ahead: Uncertainty and Potential Economic Fallout
The long-term impact of President Trump’s “Liberation Day” tariffs remains uncertain. Economists are divided on whether the potential benefits of protecting domestic industries will outweigh the risks of a global trade war. what is clear is that the coming months will be a critical test of the U.S. economy’s resilience and the Trump administration’s ability to navigate an increasingly complex and volatile global landscape. For representatives like Gabe Evans, the decision to align with Trump’s policies could prove to be a defining moment in their political careers.
