President Trump's new tariffs on dozens of countries exporting goods to the U.S. sent markets into a massive meltdown Thursday, prompting fears of a global recession.

The Dow Jones Industrial Average closed with a loss of more than 1,680 points, falling 3.98 percent on the day. The S&P 500 index closed with a loss of nearly 5 percent, and the Nasdaq composite closed with a loss of nearly 6 percent.

Trump's tariff plan, revealed during an event at the White House on Wednesday, levies new taxes on imports from nearly every country.

Despite economic turbulence, Trump insisted Thursday that the rollout is “going really well." Trump has argued that his new tariffs will lead to more manufacturing and less foreign trade reliance for the U.S. He also has pointed to tariffs as a revenue-generator for the government. 

"It was an operation, like when a patient gets operated on, and it’s a big thing. I said this would exactly be the way it is," Trump told reporters as he departed the White House to travel to Florida for the weekend. "The markets are going to boom, the stock is going to boom, the country is going to boom. And the rest of the world wants to see if there’s any way they can make a deal."

He did not elaborate on whether he is open to negotiations with trading partners to reverse some of the tariffs.

The Hill's Alex Gangitano and Sylvan Lane have highlighted five key surprises from the Trump administration's play.

Countries around the globe responded to the tariff news with either threats of retaliation or calls for negotiation.

Canada will impose 25 percent tariffs on U.S. auto imports that do not comply with the U.S.-Mexico-Canada Agreement (USMCA) on free trade, Prime Minister Mark Carney announced Thursday. He said the move was a direct response to the 25 percent tariff levied on Canadian auto imports effective Thursday.

European Commission President Ursula von der Leyen said the European Union (EU) will respond with "countermeasures" if negotiations don't produce a deal.

India’s Trade Ministry said the country is engaged in ongoing talks with the Trump administration to try to hash out an agreement and expects to "take them forward in the coming days.” 

Their responses come after Treasury Secretary Scott Bessent attempted to dissuade other countries from hitting back with their own increases. He said during a Wednesday interview on Fox News’s “Special Report" that the U.S. is positioning for “long-term” economic growth.

“My advice to every country right now is: Do not retaliate. Sit back, take it in, let’s see how it goes. Because if you retaliate, there will be escalation. If you don’t retaliate, this is the high-water mark,” Bessent said.

Former Vice President Pence, who served alongside Trump during his first term, joined the chorus of voices criticizing Trump's economic game plan with a social media post calling the tariffs the “largest peacetime tax hike in U.S. history.”

Others who have chimed in:

• Sen. Richard Blumenthal (D-Conn.) called the tariff gambit “probably the most stupid economic step taken by a president in this generation."

• Sen. Mitch McConnell (R-Ky.) warned it will trigger higher costs for "producers and consumers across the board." 

• Billionaire businessman and Trump critic Mark Cuban hit the "unrecognized failure of the Trump tariffs approach," arguing Trump "ignored entrepreneurs and innovators."

Follow live updates from The Hill for more reactions to Trump's tariffs.

Vice President Vance defended the tariffs in an interview on Fox News's "Fox & Friends" before markets opened Thursday, saying Trump campaigned on taking the economy in a different direction: "He promised it, and now, he's delivering."

"I think it's useful for all of us to step back and ask ourselves, ‘What has the globalist economy gotten the United States of America?’ ... A lot of people have gotten rich from American jobs moving overseas, but American workers have not gotten rich, and frankly American companies have not gotten wealthy from the increasing growth of foreign competitors manufacturing overseas," he said.

The Trump administration has stressed the president is serious about tariffs and trying to reposition the U.S. in the global economy beyond trade reliance.

But others close to Trump have suggested that the self-proclaimed expert dealmaker is using tariffs as a negotiating tactic.

Eric Trump, one of the president’s sons, publicly advised affected countries to act quickly to negotiate with his father.

“The first to negotiate will win — the last will absolutely lose,” the vice president of the Trump Organization posted on social media Thursday morning. "I have seen this movie my entire life…"

Former White House press secretary Kayleigh McEnany also suggested that the tariffs are a strategic move.

“I firmly believe that it’s posturing,” McEnany said on Fox News, where she now works. “This is the great dealmaker, the great negotiator. And he’s someone who understands how to get to a good end result.” 

Sens. Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.) — both Finance Committee members — have drafted bipartisan legislation that would give Congress more say over tariffs.

The measure, dubbed the Trade Review Act of 2025, would require the president to notify lawmakers of tariff changes within 48 hours and provide additional information about the rationale and possible impact on American businesses and consumers. 

Presidential tariffs would sunset after 60 days if Congress doesn't pass a joint resolution in support, under the Grassley-Cantwell bill, and Congress would be able to stop a president's tariffs at any time with a resolution of disapproval. 

What they are saying:

• Cantwell: "This bill reasserts Congress’s role over trade policy to ensure rules-based trade policies are transparent, consistent, and benefit the American public. Arbitrarily tariffs, particularly on our allies, damage U.S. export opportunities and raise prices for American consumers and businesses."

• Grassley: "For too long, Congress has delegated its clear authority to regulate interstate and foreign commerce to the executive branch."

The proposal comes just hours after the Senate, with support from some Republicans, passed a resolution striking back at Trump's tariffs targeting Canadian imports. It's unlikely to move in the GOP-controlled House but was seen as a signal of disapproval of Trump's escalating tensions with Canada.

Senate Majority Leader John Thune (R-S.D.) had urged Republicans to vote against it, arguing it was a political ploy by Democrats to embarrass Trump.