##  [# Trump Tariffs Sends VIXY Soaring, ETFs Broadly Slump](/sections/news/trump-tariffs-sends-vixy-soaring-etfs-broadly-slump) 

 

# Trump Tariffs Sends VIXY Soaring, ETFs Broadly Slump

 

 

\- Trump's retaliatory tariffs caused markets to tank Thursday.  
\- All countries to be hit with 10% baseline tariff.  
\- Retail, manufacturing and consumer discretionary among hardest hit sectors.



 

 

 

 

 [![Kristin](/sites/default/files/styles/author_image_icon/public/2024-04/Kristin_Myers-square_0.png?itok=UcEMs4b4)](/authors/kristin-myers) 

[By Kristin Myers](/authors/kristin-myers)

 Apr 03, 2025

 Edited by: David Tony

 

 

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Markets slumped Thursday, leaving investors few places to hide as President Donald Trump announced retaliatory tariffs. Economic uncertainty and investor fear sent the [**ProShares VIX Short-Term Futures ETF (VIXY)**](https://www.etf.com/VIXY) soaring on Thursday, rising nearly 25%. VIXY represents the Cboe Volatility Index (VIX), often dubbed the market's "fear index."

Among broad market ETFs, the [**SPDR Dow Jones Industrial Average ETF Trust (DIA)**](/DIA) dropped 4% by the close, while the [**SPDR S&amp;P 500 ETF Trust (SPY)**](/SPY) slipped close to 5%.

## 'Liberation Day' Tariff Announcement

During a speech from the White House on Wednesday, the president announced broad sweeping tariffs on all imports into the United States. Declaring a "national emergency" caused by "[foreign trade and economic practices,](https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-president-donald-j-trump-declares-national-emergency-to-increase-our-competitive-edge-protect-our-sovereignty-and-strengthen-our-national-and-economic-security/)" the president announced a 10% baseline tariff on all countries.

While investors hoped tariffs would be narrow in scope, the president also announced individualized tariffs on countries with which the White House says the U.S. has the largest trade deficits. Those tariffs, Trump said, would amount to roughly 50% of the existing taxes those countries impose on the U.S., according to the administration.

India is set to be slapped with a 26% tariff, while the European Union will face a 20% tariff. China's tariffs are set to 34%, and the United Kingdom 10%. One of the biggest tariffs on the list is Vietnam, whose exports will see a 46% tariff.

 
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## ETFs React to New Tariffs

The [**VanEck Vietnam ETF (VNM)**](/VNM) fell by more than 10% on Thursday. Retailers offering toys, clothes and furniture will see prices rise as Vietnamese exports are set to be slammed by the tariffs. Shares of [Nike (NKE)](/stock/NKE), which produces goods in the Southeast Asian country, slumped by over 14%.

Tariffs are largely expected to raise prices for the American consumer as manufacturers pass on tariff costs to buyers. The [**Consumer Discretionary Select Sector SPDR Fund (XLY)**](/XLY) dropped on the tariff news as investors anticipated consumers would rein in spending once they face higher prices of goods.

Retail ETFs also sank. The [**SPDR S&amp;P Retail ETF (XRT)**](/XRT) dropped by 8%, dragged down by companies like [Carvana (CVNA)](/stock/CVNA), which fell more than 19% Thursday. While used-car sellers should ultimately benefit from Trump's tariffs, the market selloff was felt almost everywhere.

But opportunities can still be found amid the economic uncertainty.

The [**iShares 20+ Year Treasury Bond ETF (TLT)**](/TLT) jumped by 0.5% as long-term bond prices rose as investors fled risk-on assets. But not all typical "safe haven" investment strategies were working Thursday. The [**SPDR Gold Trust (GLD)**](/GLD) wobbled on the tariff news, despite posting a more than 19% gain since the start of the year, as Trump tariff headlines have hit the market.



 

 

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 [ Kristin Myers SVP Content/EIC ](/authors/kristin-myers) 

 

 

  Kristin Myers is an award-winning journalist, who covers business and finance news. She is the current Senior Vice President of Content and Editor in…   [View Bio](/authors/kristin-myers)

 



 

 


 Related Topics  [International](http://www.etf.com/topics/international) 

 [Vietnam](http://www.etf.com/topics/vietnam) 

 [Europe](http://www.etf.com/topics/europe)