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s the world grappled with the far-reaching implications of President Donald Trump's sweeping tariffs, a dark cloud descended upon Wall Street. The real estate sector, in particular, felt the pinch on April 3, as investors grew increasingly anxious about the potential consequences.

    While the broader market suffered significant losses, REITs managed to hold their ground somewhat better, with the Nareit Equity REIT index dipping only 2% by midday Thursday. However, this modest decline belied the severity of the pain felt by certain sub-sectors. Hotel and industrial REITs, heavily reliant on international trade, bore the brunt of the sell-off, with hotel stocks plummeting nearly 8% and industrial REITs losing around 7%.

    Prologis, the world's largest industrial REIT, took a hit, falling to $104 per share as investors fretted about the impact on global supply chains. Hotel giants Hyatt and Marriott also suffered significant losses, while retail owners watched their stock prices tumble in response to concerns that tariffs would drive up costs for consumers.

    Office REITs like BXP, Cousins Properties, and Highwoods Properties were not immune to the downturn, with all three losing more than 4% by midday. Even Blackstone, the private equity behemoth with a vast real estate portfolio, felt the sting of the market's unease, falling 7.5%.

    In contrast, European REITs bucked the trend, rising 2% as investors sought safer havens in the face of global uncertainty. Manufactured housing, infrastructure, and healthcare REITs also benefited from the news, with their stocks up 2%, 3%, and 1%, respectively.

    The catalyst for this market turmoil was Trump's decision to impose a 10% baseline tariff on all foreign goods entering the US, effective April 5. The President also slapped steeper tariffs on certain countries, including a 20% levy on EU imports and 34% on Chinese goods.

    Some experts warn that the escalating trade war could have far-reaching consequences for the global economy, potentially even pushing the US into recession. "This is just the first shot fired in this trade war," said Brown Brothers Harriman Senior Markets Strategist Elias Haddad. "It's going to get ugly, and investors are spooked."

    The fallout from Trump's tariffs extended far beyond REITs, with commercial real estate services firms like CBRE, Colliers, JLL, and Cushman & Wakefield all suffering significant losses as the market digested the implications of this seismic shift in global trade.