General
Monday Briefing
Uncertainty roils markets.
The New York Stock Exchange on Friday. Credit…Karsten Moran for The New York Times
Chaos and uncertainty after Trump’s tariff rollout
Wall Street’s elite grappled with anger, anxiety, frustration and fear over the weekend in response to President Trump’s announcement of sweeping new tariffs, which top Trump aides raced to defend in various news media appearances. Some of his advisers said that they had already heard from foreign nations seeking to negotiate a deal on trade.
Financial markets were hit hard by another wave of selling at the start of trading in Asia this morning, with investors and economists grappling with rising odds of a severe economic downturn. Stocks in Japan plunged over 8 percent, while South Korea’s market tumbled about 5 percent. The price of Bitcoin has plunged 10 percent since the tariffs were announced, dropping below $78,000 last night, and U.S. oil prices fell by 15 percent.
Yet Trump’s top economic advisers dismissed the turmoil, insisting that the trade war would ultimately improve America’s economic fortunes. Speaking to reporters yesterday, Trump said that he would not reverse them until the trade deficits that the U.S. runs with China, the E.U. and other nations disappeared. “Unless we solve that problem,” he said, “I’m not going to make a deal.”
Like Brexit, Trump’s tariffs struck a hammer blow at the established order, Mark Landler, our London bureau chief, writes in an analysis. But, also, as in Brexit, the ultimate ramifications are unsettled: Trump could yet reverse himself. And free trade may remain so popular that the rest of the world finds a way to keep the system going, even without the U.S., its central player.
What’s next: The tariff announcement on Friday has plunged corporate America into chaos. We asked economists, investment researchers and other experts to help make sense of what lies ahead.
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