Tag: stock market

President Trump’s new policy seems to be “Make America Poor Again,” as he announced tariffs on imports from around the world. This decision caused Wall Street to plummet, following global markets on Thursday. Economists are now warning that the risk of recession is on the rise.

Interestingly, Russia was absent from the list of countries that Trump plans to hit with steep tariffs, sparking accusations of favoritism towards Russian President Vladimir Putin. This move did not go unnoticed on social media, with critics quick to point out Trump’s admiration for Putin.

After the U.S. market closed on Wednesday, Trump declared a 10% baseline tax on imports from all countries, with higher tariff rates on nations that have trade surpluses with the U.S. China will face a 34% tax, the European Union 20%, and Taiwan 32%.

Trump announced a significant list of countries and regions that would face new tariffs, which included a number of lesser-known territories with minimal trade relations with the United States. Notably, one mention highlighted a collection of islands that were entirely uninhabited.

Trump claims that these tariffs will make the global system fairer and bring manufacturing jobs back to the U.S. However, experts warn that these tariffs could slow down economic growth and worsen inflation, which is already above the Federal Reserve’s target.

Stocks of major companies like Nike, Best Buy, and Dollar Tree plunged more than 11% before the opening bell on Thursday. Trump has also announced tariffs on auto imports, China, Canada, Mexico, steel, aluminum, oil from Venezuela, and plans for import taxes on pharmaceutical drugs, lumber, copper, and computer chips.

The Wall Street Journal criticized Trump’s tariffs, listing potential repercussions that could backfire on the president and his agenda. The editorial board highlighted the risks of retaliation and the negative impact on the economy. The future seems uncertain as the world waits to see how these tariffs will play out.

The U.S. stock market experienced significant drops on Monday, following a global sell-off triggered by concerns over impending tariffs set to be implemented by President Trump on Wednesday. 

In New York, the S&P 500 was down 0.8%, marking one of its worst losses in recent years. The index is poised to conclude the first quarter of the year with a 5.9% loss, potentially making it the worst quarter in nearly three years. The Dow Jones Industrial Average also saw a decline of 111 points, or 0.3%, as of 10:10 a.m. Eastern time, while the Nasdaq composite dropped by 1.7%.

The primary reason for these market fluctuations is the impending Trump tariffs. Economists at Goldman Sachs anticipate that Trump will announce an average reciprocal tariff of 15%, leading them to adjust their forecasts for inflation and U.S. economic growth for the remainder of the year. They have also raised concerns about a potential 35% chance of recession within the next year, up from an earlier forecast of 20%. This shift reflects a decrease in growth projections, declining confidence, and indications from White House officials suggesting a willingness to endure economic hardships.

The uncertainty surrounding these tariffs could prompt U.S. households and businesses to curtail their spending, thereby impacting an economy that had been performing well at the end of last year. 

As April 2nd approaches, the markets are clearly expressing their disapproval of Trump’s economic policies. Despite his portrayal as a successful businessman, Trump’s history of multiple bankruptcies and lack of understanding of basic economics have raised doubts about his ability to navigate the complexities of the financial markets.