US financial markets suffered a catastrophic sell-off as President Donald Trump’s sweeping tariffs on foreign imports sent shockwaves across every sector. Investors dumped shares en masse, fearing higher consumer prices, weaker corporate profits, and a looming economic slowdown.

The turmoil saw stocks across airlines, tech, retail, banking, and apparel plunge, leading to what analysts described as the biggest single-day market drop since the Covid-19 crash five years ago.

“This is a game changer, not only for the US economy but for the global economy,” said Olu Sonola, Fitch Ratings’ head of US Economic Research. “Many countries will likely end up in a recession.”

The US economy relies on consumer spending for 70% of its activity, but with tariffs effectively acting as a business tax, price hikes on goods and services could lead to a sharp decline in spending. This, in turn, threatens to stall economic growth or push the country into a recession.

Here’s a breakdown of the sectors and companies hit hardest by the market collapse:

Airlines: Travel Demand at Risk

Americans facing higher costs for essentials may cut back on travel, putting pressure on airline revenues.

• United Airlines ↓ 11.6%

• American Airlines ↓ 8.5%

• Delta Air Lines ↓ 8.6%

Clothing & Shoes: Import Tax Nightmare

Most major clothing brands manufacture overseas, meaning they now face higher costs to import their goods into the US.

• Nike ↓ 10.4%

• Under Armour ↓ 17.4%

• Lululemon ↓ 11.1%

• Ralph Lauren ↓ 15.6%

• Levi Strauss ↓ 11.5%

Retailers: Big Box & E-Commerce Crushed

Retailers heavily depend on imported inventory, making them prime victims of the tariff war.

• Amazon ↓ 7%

• Target ↓ 9.5%

• Best Buy ↓ 14.8%

• Dollar Tree ↓ 8.4%

• Kohl’s ↓ 24.4%

Technology: Rising Costs for Devices & Components

Tech giants source parts from abroad or manufacture entire products overseas, making them vulnerable to tariffs.

• Apple ↓ 8%

• HP ↓ 13.1%

• Dell ↓ 15.4%

• Nvidia ↓ 6.3%

Banks: Recession Fears Slam Financials

With a potential economic downturn, banks could see a decline in loans as consumers and businesses pull back on spending.

• Wells Fargo ↓ 7.5%

• Bank of America ↓ 8.9%

• JPMorgan Chase ↓ 5.7%

Restaurants: Consumer Cutbacks on Dining Out

As households tighten budgets, discretionary spending on dining out is already dropping.

• Starbucks ↓ 10.8%

• Cracker Barrel ↓ 11.1%

• Cheesecake Factory ↓ 7.3%

Automakers: Surprising Resilience

Unlike other industries, US automakers weren’t hit as hard since most of their steel and aluminum is sourced domestically.

• General Motors ↓ 3%

• Ford ↓ 4%

• Tesla ↓ 4.4%

• Stellantis ↓ 7.9%

What Happens Next?

With the market in freefall, analysts warn that unless the tariffs are reconsidered, the economic fallout could worsen. The Federal Reserve may be forced to step in with stimulus measures, but uncertainty remains over how long the consumer-driven economy can withstand the shock.

Investors, consumers, and businesses alike brace for impact as the full consequences of Trump’s tariff war unfold.