Washington, April 4: US companies had trillions of dollars in value wiped out Thursday after President Donald Trump slapped sweeping tariffs on foreign imports. Virtually every sector suffered big losses as US financial markets closed with their biggest one-day drop since COVID-19 flattened the global economy five years ago.

Banks, retailers, clothing, airlines and technology companies were among the hardest hit, with consumers expected to cut spending if tariffs lead to higher prices for goods and services. Many economists called the tariffs much worse than expected, and investors dumped shares in companies they predict will suffer most from what is effectively a business tax.  In many cases that tax will be passed on to consumers. If consumers pull back their spending because of higher prices, businesses will produce fewer goods and economic growth could stall or contract. US: Stock Markets Fall Following Trump's Tariff Announcement.

Consumer Spending Makes Up About 70 per Cent of Economic Activity in the US

“This is a game changer, not only for the US economy but for the global economy," Olu Sonola, Fitch Ratings' head of US Economic Research, said in a report. "Many countries will likely end up in a recession.” With a drop of 4.8 per cent in the S&P 500, more than USD 2 trillion in value vanished, according to Howard Silverblatt, a senior index analyst at S&P Dow Jones Indices.

Here's a breakdown of some of the market's worst performing sectors and companies on Thursday

Airlines

Airlines had been projecting a strong year for profits. However, if Americans are faced with higher prices for essentials, economists say that could put a crimp in their travel budgets.

United Airlines, down 15.6 per cent

American Airlines, down 10.2 per cent

Delta Air Lines, down 10.7 per cent

Clothing and shoes

Most major shoe and clothing makers have their products made outside of the US, meaning they will have to pay a tariff, or import tax, on all the goods that are shipped back into the country for sale here.

Nike, down 14.4 per cent

Under Armour, down 18.8 per cent

Lululemon, down 9.6 per cent

Ralph Lauren, down 16.3 per cent

Levi Strauss, down 13.7 per cent

Retailers

Big box and online retailers also import a massive amount of their inventory from outside the US

Amazon, down 9 per cent

Target, down 10.9 per cent

Best Buy, down 17.8 per cent

Dollar Tree, down 13.3 per cent

Kohl's, down 22.8 per cent

Technology

Companies that make and sell computers, smartphones and other technology source many of their parts from abroad. Some manufacture their entire products overseas, meaning they will have to pay a tariff when those products are shipped back for sale to consumers. Tech Layoffs Coming to India: 26% Reciprocal US Tariffs on India Imposed by President Donald Trump May Lead to Biggest Job Cuts in 16-Years of History, Says Report.

Apple, down 9.2 per cent

HP, down 14.7 per cent

Dell, down 19 per cent

Nvidia, down 7.8 per cent

Banks

If the economy slips into a recession, households and businesses will be less likely to borrow money as demand for products and services decline.

Wells Fargo, down 9.1 per cent

Bank of America, down 11.1 per cent

JPMorgan Chase, down 7 per cent

Restaurants

American consumers, feeling less confident about their financial futures this year, have already been pulling back on spending at restaurants as they tighten their budgets and prioritize only essential goods and services.

Starbucks, down 11.2 per cent

Cracker Barrel, down 12.7 per cent

Cheesecake Factory, down 9.4 per cent

Automakers

Somewhat surprisingly, automakers didn't get hit as hard most other sectors did on Thursday. That could be because most of Ford, GM and Stellantis' steel and aluminum — which Trump previously announced tariffs on — already comes from the United States, reducing the direct impact the companies would feel from higher duties.

General Motors, down 4.3 per cent

Ford, down 6 per cent

Tesla, down 5.5 per cent

Stellantis, down 9.4 per cent

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)