Nasdaq 100 futures plunged 4% and S&P 500 Index futures sank 3.23% as Trump imposes sweeping tariffs.

President Donald Trump unveiled sweeping tariffs of a minimum 10%, but even higher for some countries. What’s likely spooking traders is that these rates will end up being much higher than expected for many nations. Traders had hoped a 10% rate would be a universally applied cap, not a starting baseline rate.

The European Union will have a 20% levy and Vietnam is seeing a 46% tariff, according to White House documents. Other nations slapped with larger tariffs include Japan at 24%, South Korea at 25%, India at 26%, Cambodia at 49%.

“This is not full reciprocal. This is kind reciprocal,” Trump said.

Mary Lovely, a senior fellow at the Peterson Institute for International Economics, said the tariffs Trump announced Wednesday were “much worse than we feared.” Just how they would be administered was unclear, she said, and there were “huge implications for rerouting of trade” globally.

Trump indicated he would consider lowering rates if other nations remove their trade barriers on US exports.

“I say terminate your own tariffs, drop your barriers, don’t manipulate your currencies,” Trump said.