- Title: 'Nobody in the world wins' - Analysts on Trump tariff announcement
- Date: 3rd April 2025
- Summary: NEW YORK, NEW YORK, UNITED STATES (APRIL 3, 2025) (REUTERS) TRADING FLOOR AT NEW YORK STOCK EXCHANGE ALLENTOWN, PENNSYLVANIA, UNITED STATES (APRIL 3, 2025) (REUTERS) (SOUNDBITE) (English) CFRA RESEARCH, CHIEF INVESTMENT STRATEGIST, SAM STOVALL, SAYING: “My outlook is that because our base case says that there will attempt to be negotiations to bring down these tariffs, tha
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- Keywords: Donald Trump Dow Nasdaq S&P 500 analysts recession tariffs
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- Country: US
- Topics: Economic Events,North America,Equities Markets
- Reuters ID: LVA00A399003042025RP1
- Aspect Ratio: 16:9
- Story Text:President Donald Trump's punishing tariffs rocked global financial markets on Thursday (April 3), with the dollar and U.S. stocks tumbling as investors rushed to safe havens on fears a broadening trade war would push an already fragile world economy into recession.
Trump's trade measures, announced after Wall Street's closing bell on Wednesday (April 2), were much more severe than many investors were anticipating. They included a 10% baseline levy on all U.S. imports, with much higher duties imposed on some countries.
Concerns mounted over potential retaliation from trading partners. "Nobody in the world wins," said Liz Miller, president of Summit Place Financial, on Trump's tariff plan.
“They appear very protectionist for the United States. But really, it's higher costs around the world,” said Miller. “It'll flow through to consumers. It'll flow through to businesses. But everybody on either side of the oceans will be paying more back and forth. It sort of just brings the overall global price level up.”
So far, Washington has said the base 10% tariffs will go into effect on April 5 and the higher rates on April 9.
Tariffs of 25% on vehicle imports took effect at midnight. The new levies include a 34% tariff on imports from China, 46% on Vietnam, 24% on Japan and 20% on Europe.
“The worst case scenario is that the administration says, no, we're simply going to stick with these tariffs. And in a sense, ‘Beggar our neighbors’ and bleed them until they basically give up. In that case, yes, I think that the economy will slip into recession,” said Sam Stovall, chief investment strategist at CFRA Research.
However, Stovall clarified that this scenario is not "what Trump wants," but rather represents a "base case" scenario.
“The goal is to bring them down to all at about the 10% level. And we think that that is something that the administration is going to work toward.”
Miller agreed, describing the tariffs announcement as a 'starting point.' "We have a president who believes in negotiation," she said.
The market had already swooned on jitters about tariffs. In mid-March the S&P 500 confirmed a correction, a drop of 10% from a recent high. With Thursday's dive, the index was down about 11% below its February record high.
“The announcements last night just added more uncertainty and are dragging it out. The risk of that is that we are seeing businesses and consumers really on pause. This economy was in good shape without this uncertainty. So, we know we have a stable base, but as businesses and consumers pause, we could get a self-fulfilling slowdown,” said Miller.
Despite the market downturn, both Miller and Stovall see potential buying opportunities.
“There's an old saying that stocks tend to pop after a drop, and I think that that is a possibility here as well,” said Stovall.
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