Trump’s Tariffs Spark Market Chaos Amid Economic Claims

The White House released a press statement celebrating Trump’s “WEEK 11 WINS,” touting the president’s role in fostering “Economic Prosperity.” This announcement arrived shortly after the U.S. stock markets saw unprecedented declines, including the Dow Jones Industrial Average dropping 1,500 points over two consecutive days.

“It was another highly successful week for the American people as President Donald J. Trump continues his relentless pursuit of strength, prosperity, and peace — laying the groundwork for America to remain a global powerhouse for generations,” the statement claimed.

The release also emphasized achievements in immigration, noting a significant drop in illegal border crossings and increased arrests of suspected gang members. Furthermore, it mentioned Trump’s initiation of a reciprocal trade policy aimed at reversing decades of globalization that have afflicted U.S. manufacturing.

Additions to the announcement included positive news on manufacturing from companies such as Nissan and General Motors.

— Kevin Breuninger

The U.S. stock markets experienced a dramatic decline on Friday, with the Dow losing 2,200 points. In just two days, the S&P 500 witnessed a staggering 10% drop. For comprehensive updates on the market, visit Finance Newso’s dedicated coverage.

As the stock market faced significant losses, Trump took to Truth Social to express a defiant message to his followers.

“ONLY THE WEAK WILL FAIL!” he emphatically stated in a post.

This sentiment mirrored an earlier, capitalized message he shared, insisting that his policies would “NEVER CHANGE,” despite the market’s downturn following his announcement on tariffs.

— Kevin Breuninger

Senate Minority Leader Chuck Schumer lambasted Trump for visiting one of his Florida golf courses while stock markets were enduring steep declines linked to the tariff implications.

“While we are attending to these crucial matters, it’s my understanding that Donald Trump is on a golf course,” Schumer remarked to reporters, announcing plans by Democrats to push for a vote on rescinding specific tariffs.

“I don’t know if he’s playing today or caddying for someone,” Schumer quipped, adding skepticism about Trump’s reliability even in a caddy role.

He further articulated the disconnect between Trump and the economic realities, especially concerning tariffs that have increased costs for essential goods.

The proposed amendment aims to eliminate tariffs that have augmented the prices of groceries, pharmaceuticals, and various consumer goods imposed since Trump re-entered office.

— Dan Mangan

The recent announcement regarding Trump’s significant tariff plan was made on Wednesday, April 2. An earlier version of this report incorrectly identified the day.

As Trump embarks on his aggressive tariff campaign, uncertainty surrounds Congress’s ability to rein in his actions.

His executive order on implementing reciprocal tariffs cites authority derived from the International Emergency Economic Powers Act and the National Emergency Act, marking a historical use of these powers to impose tariffs.

Historically, Congress holds the power to levy taxes under the U.S. Constitution, and while bipartisan sentiments against Trump’s tariffs are emerging, the likelihood of legislative intervention appears slim.

— Kevin Breuninger

In a recent move, Trump announced an extension of the deadline for China-based ByteDance to divest its U.S. operations of TikTok or risk an effective ban, marking the second such extension.

Through a post on Truth Social, Trump stated he is signing an executive order to allow TikTok to operate for an additional 75 days. This follows the impending April 5 deadline for a “qualified divestiture” mandated by national security law.

While various U.S. companies, such as Oracle and Amazon, have expressed interest in acquiring TikTok’s U.S. business, Trump acknowledged that further negotiations are necessary to secure essential approvals, including from the Chinese government.

Adding complexity to the situation, Trump’s recent tariffs affecting China, now set at a total rate of 54%, have sparked a 34% tariff on all U.S. imports by China, effective April 10.

— Jonathan Vanian

A recent analysis from the Cato Institute reveals notable discrepancies between the trade-weighted average tariff rates reported by the Trump administration and actual figures documented by the World Trade Organization.

Trump’s administration propagated figures claiming tariffs imposed by other countries were significantly higher than the reported trade-weighted average rates; for example, China is cited at 67% by the administration compared to the actual average of just 3% in 2023. The same applies to the European Union and India, where rates were additionally inflated.

— Ashley Capoot

As stock prices continue to decline, financial advisors are urging investors to be cautious about attempting to “buy the dip,” which involves purchasing assets at temporarily reduced prices.

The strategy can be difficult to successfully execute due to unpredictable market movements. Experts recommend considering dollar-cost averaging as a more prudent approach, where investments are made at fixed intervals to mitigate risk.

— Kate Dore

Stock markets continued to decline sharply on Friday, with the Dow experiencing a drop of 2,000 points as investors reacted to the implications of Trump’s tariff policies, driving the index toward bearish territory. For the latest market news, see Finance Newso’s ongoing coverage.

The recent tariff plan announced by the Trump administration aims to impose substantial fees on goods from numerous countries, predicted to lead to rising consumer prices.

Items such as leather goods, clothing, shoes, and various accessories could see price increases ranging from 10% to 20%, as estimated by the Yale Budget Lab. Additionally, costs for vehicles and auto parts might surge by upwards of 8% due to these tariffs.

— Greg Iacurci and Annie Nova

Berkshire Hathaway, overseen by Warren Buffett, issued a rare statement repudiating circulating claims that misattributed remarks to the investment mogul.

The statement came after Trump shared a video suggesting that the president is intentionally crashing the stock market to drive down interest rates, falsely quoting Buffett as having said Trump is making exceptional economic moves.

Berkshire Hathaway stressed that all assertions attributed to Buffett in the circulating reports were false.

— Kevin Breuninger and Yun Li

Senate Minority Leader Chuck Schumer criticized Trump for implementing tariffs in “the dumbest way possible,” referencing how the president imposed tariffs on penguins while sparing Russia.

He detailed how Trump sanctioned the Heard and McDonald Islands, home to penguin populations, contrasting this with the failure to address trade issues with Russia.

Schumer argued that while there are strategic ways to implement tariffs, Trump’s approach lacks any coherent sense.

— Dan Mangan

Klarna and StubHub have postponed their anticipated initial public offerings (IPOs) due to turbulence in the stock market, a source informed Finance Newso.

Both companies, which recently submitted their IPO requests, currently lack a timeline for pursuing public offerings, leaving venture capital investors disappointed as they had hoped for a resurgence in IPO activity under the current administration.

— Annie Palmer

Hyundai has announced it will keep prices stable on its current vehicle lineup despite the potential cost hikes stemming from new tariffs, instituting a “customer assurance” program until June 2.

During this “protection window,” the price of Hyundai and Genesis models will remain unchanged, even as Trump’s 25% auto tariff takes effect.

Hyundai’s CEO noted the importance of providing price stability in light of consumer uncertainty regarding rising costs.

— Michael Wayland

Stellantis is adopting similar measures as Ford by extending employee discounts on new vehicles to all consumers in response to the recently implemented auto tariffs.

The company, which manages brands like Chrysler and Jeep, announced that this initiative will be available through April 30. The offer is part of an aggressive marketing strategy to sustain dealer sales amidst anticipated price hikes.

— Michael Wayland

The White House declared, “President Trump’s Tariffs Are Already Delivering Wins for Americans,” despite the S&P 500 index’s significant 4.5% drop.

The statement claimed that these tariff policies have had immediate positive effects on American consumers, showcasing moves by domestic automakers that followed the tariff announcements.

As the White House pointed out, several companies have altered their production plans in light of the new tariffs, reflecting a proactive response to the administration’s changes.

— Dan Mangan

Technology stocks have endured a second successive decline, with the Nasdaq on track for its worst week since 2020, as trade war concerns triggered significant market volatility.

Leading the declines, stocks like Tesla and Nvidia reported drops of around 9% and 7% respectively, while heavyweights like Apple and Meta both fell by approximately 4%.

The market is currently experiencing its most severe downturn in recent years as TRump’s tariff policies stir global uncertainty.

— Samantha Subin

Nintendo announced the postponement of preorders for its highly anticipated console, Switch 2, as the company assesses the tariffs’ potential impact on the market.

Lloyd Blankfein, the former CEO of Goldman Sachs, urged Trump to permit countries to negotiate the recently imposed “reciprocal” tariff rates.

He pointed out that there must be ongoing diplomatic discussions to relieve the tension stemming from the trade war, suggesting that the administration should consider delaying the implementation of these tariffs to foster negotiation.

— Sean Conlon

U.S. aerospace and defense industry representatives are calling on the Trump administration to uphold a 1980 trade agreement that has allowed for largely duty-free trade in the sector, highlighting concerns that recently implemented tariffs will significantly escalate costs.

Industry leaders indicate that the increased expenses could undermine the economic benefits derived from their exports, which currently contribute to a substantial reduction in the U.S. trade deficit.

— Leslie Josephs

Klarna has reportedly halted its planned initial public offering following the disruption caused by Trump’s sweeping tariff measures, which have unsettled the financial landscape.

As per a report by the Wall Street Journal, the company has postponed its marketing efforts initially scheduled to start this week.

Klarna did not respond to requests for comment on the matter.

— Samantha Subin

Jerome Powell, Chair of the Federal Reserve, expressed concerns that Trump’s tariffs will exacerbate inflation and hinder growth, contributing to a highly uncertain economic forecast.

However, Powell emphasized that the Fed will refrain from making any interest rate adjustments until more information becomes available regarding the long-term effects of these policies. His remarks were made shortly after Trump encouraged the Fed to lower interest rates.

“Our obligation is to ensure that long-term inflation expectations remain stable,” Powell stated, indicating a careful approach towards future monetary policy adjustments.

— Jeff Cox, Yun Li

Join the live stream featuring Fed Chair Jerome Powell discussing interest rates and the ongoing effects of tariffs.

Nike’s stock experienced an uptick after Trump disclosed that he engaged in talks with a key Vietnamese leader regarding potential tariff negotiations.

Trump announced in a post that he spoke with the General Secretary of Vietnam’s ruling party about potentially reducing the recently enforced tariffs to “zero” if an agreement can be reached between the nations.

This discussion follows Trump’s imposition of a 46% tariff on Vietnamese imports, effective next week, as he seeks to renegotiate trade conditions.

— Dan Mangan

California Governor Gavin Newsom is working to secure exemptions for products manufactured in California from retaliatory tariffs imposed by various countries.

Newsom is actively pursuing new trade relationships and has emphasized California’s established trade links with Mexico, Canada, and China while highlighting the state’s economic significance.

The Trade Partnership forecasts that California could face significant economic repercussions from Trump’s tariff strategies.

— Michele Luhn

The Dow Jones Industrial Average dropped 1,400 points amid increasing market volatility. The Nasdaq Composite incurred a decline of 4.7%, potentially entering bear market territory if it sustains these levels. For in-depth coverage of market activities, refer to Finance Newso.

— Josephine Rozzelle

Bob Iger, CEO of Walt Disney, raised concerns that tariffs imposed on imports could compel Disney to reduce its spending, as reported during a meeting at ABC News.

Iger highlighted that rising steel tariffs may significantly affect the costs of construction for two Disney cruise ships currently underway.

If costs escalate disproportionately, he indicated that Disney may have to reconsider its expenditure strategies.

— Jacob Pramuk

Trump has arrived at his golf club in West Palm Beach, Florida, coinciding with a further decline in major stock indices by over 3% amid ongoing market turmoil following his tariff announcements.

The president is expected to attend a “candlelight dinner” later at Mar-a-Lago.

Earlier in the day, he celebrated “better than expected” job figures.

— Dan Mangan

Amid ongoing market declines, Jim Cramer cautioned that now is not the time for investors to abandon the stock market.

“A get-out-now mentality should never exist,” he stressed, advising that there are factors supporting economic growth such as lower interest rates. The market is currently anticipating five Fed rate cuts this year.

Another positive note is the falling price of oil, which may help curtail inflation moving forward.

— Jeff Nash

Trump responded to China’s decision to impose a 34% tariff on U.S. goods following his recent levies, asserting that “CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!” on the Truth platform.

Trump’s statement underscores the continuing tensions in U.S.-China trade relations as both nations navigate the aftermath of the imposition of tariffs.

— Ruxandra Iordache

The Dow opened with a staggering loss of 900 points, continuing its downtrend for a second straight day, reflecting rampant fears surrounding a potential global trade war. The markets showed no signs of recovery in early trading sessions.

— Elisabeth Cordova

Trump praised a better-than-expected jobs report for March, viewing it as validation of his administration’s economic strategy.

He stated on Truth Social that the report showed “GREAT JOB NUMBERS, FAR BETTER THAN EXPECTED. IT’S ALREADY WORKING…” along with comments from press secretary Karoline Leavitt heralding advancements in job creation.

The report reveals 228,000 jobs added in March, occurring prior to Trump’s latest tariff announcements.

— Kevin Breuninger

JPMorgan has increased the probability of a recession within the year to 60%, up from 40%, citing Trump’s tariffs as a major contributor.

Analysts suggest that sustained tariff policies could lead to downturns not just in the U.S. but potentially across global markets, reflecting a significant shift in economic projections.

— Jesse Pound

The imposition of tariffs on goods from China and Vietnam could lead to steep increases in toy prices, potentially hitting 50% higher due to the raised duties, industry experts warn.

With around 77% of toys imported into the U.S. coming from China, and Vietnam being a growing alternative, these regulations present a severe challenge for toy manufacturers.

Greg Ahearn, president of The Toy Association, estimates the cost increase could significantly affect sales margins, passing burdens down to consumers.

— Sarah Whitten

Trump shared a video on social media claiming he is deliberately causing stock market declines as part of a strategy to lower interest and mortgage rates.

The video posits that his current policies are purposely designed to create economic shifts that would benefit consumer pricing and market positioning.

The White House has yet to comment on this assertion.

— Kevin Breuninger

Trump shared his enthusiasm for attracting foreign investments to the U.S., affirming in a Truth Social post that his policies would remain steadfast.

His all-caps declaration emphasized the potential for investors to become wealthy through engagement in his economic agenda.

— Kevin Breuninger

In response to recent tariffs, major car manufacturers are planning to increase prices, impose import fees, and even halt production.

The White House’s 25% tariffs on foreign autos, which include plans for additional levies on certain auto parts, are impacting global industry operations. Volkswagen has initiated plans to add import fees to U.S.-bound vehicles, while Stellantis has paused production at two assembly plants in Canada and Mexico.

This could lead to significant layoffs among U.S. workers, reflecting deep ramifications for the auto industry.

— Sam Meredith

Oil prices fell sharply on Friday following China’s announcement to impose a 34% tariff on U.S. imports as retaliation to Trump’s policies.

The price of both Brent and WTI crude oil saw declines of over 7%, reflecting the sensitivities of the oil market to U.S.-China trade tensions.

— Ruxandra Iordache

Trump’s Friday schedule includes no official activities aside from a “Candlelight Dinner” at Mar-a-Lago, his Palm Beach residence.

The president arrived in Florida after attending a dinner related to the LIV Golf Tournament and is expected to enjoy a quiet evening.

— Kevin Breuninger

Snap-on’s CEO, Nick Pinchuk, revealed that the company is “resistant to the effect,” but not immune to tariffs affecting the manufacturing sector.

With 80% of products produced in the U.S., he noted that tariffs expose existing labor challenges and the impact of stringent regulations on the economy.

Pinchuk believes the government should embrace manufacturing as a vital American industry rather than treating it as a secondary consideration.

— Laya Neelakandan

China’s finance ministry has announced a 34% tariff on all U.S. goods in response to Trump’s recent tariffs, set to take effect on April 10.

The move follows Trump’s imposition of progressively high tariffs that have caused serious strain in U.S.-China trade relations.

China reiterated a call for the U.S. to cancel its unilateral measures and resolve trade disagreements through dialogue.

— Ruxandra Iordache

The White House shared a lighthearted image of Trump against the backdrop of dramatically declining stock markets, with the caption, “Almost Friday.”

This juxtaposition reflects the stark contrast between the administration’s optimistic portrayal and the stark market realities affecting investors reeling from the fallout of the tariffs.

— Dan Mangan

Nissan’s luxury division, Infiniti, has suspended production of two crossover models intended for the U.S. market due to the recently imposed tariffs impacting auto imports.

The Infiniti Americas Vice President indicated that production would remain on hold until further notice, highlighting the necessity to review operational strategies amid shifting economic conditions.

Additionally, Nissan confirmed plans to continue vehicle production in Tennessee, unaffected by the new tariffs, opting instead to maintain its original output levels.

— Michael Wayland

The implications of President Trump’s recent tariff initiatives have prompted diverse reactions across the markets and from economic experts. To delve deeper into earlier discussions surrounding these developments, click here for previous coverage by Finance Newso.

— Elisabeth Cordova