The Dow Jones Industrial Average dropped more than 1,600 points on Thursday as U.S. stocks led a worldwide selloff after the Republican president's announcement of tariffs against much of the world ignited a shock like none seen since the COVID-19 pandemic.

Trump's sharp tariff hikes last week have heightened many economists' worries that the US could tip into recession.

A bogus rumor that President Donald Trump was considering a pause in tariffs briefly lifted markets Monday before the White House shot down the unfounded reports. The confusion — which was amplified on social media and by some traditional media outlets — lasted less than a half hour but reflected a jittery mood on Wall Street as stocks plunged over worries that Trump’s tariffs could torpedo the global economy.

Trump has insisted his tariffs are necessary to rebalance global trade and rebuild domestic manufacturing. He's singled out China as “the biggest abuser of them all” and criticized Beijing for increasing its own tariffs in retaliation.