Reuters World News Stock shock, tariff math and Friday night firings
Apr 4, 2025
The podcast dives into the fallout from President Trump’s tariffs, which led to a massive $2.4 trillion loss in U.S. stocks. It addresses the complex tariff math affecting poorer countries and the global retaliation looming over these trade policies. Listeners also learn about the mixed sentiments within the White House regarding market reactions. Moreover, it examines the peculiar trend of federal firings on Friday nights, raising questions about the motives behind these dismissals.
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Market Impact of Tariffs
- Trump's tariffs caused a $2.4 trillion loss in US stocks, the biggest single-day drop since the 2020 pandemic.
- The tariffs, the highest in over a century, could increase US consumer prices on many goods.
Tariff Formula and Impact on Poorer Countries
- The tariffs disproportionately affect poorer countries, who are less likely to import expensive US goods and thus face higher reciprocal tariffs.
- This formula doesn't account for services or existing tariffs, leading to inconsistencies like a 10% tariff on a mostly uninhabited Antarctic territory.
White House Response to Market Concerns
- While some senior Republicans and advisors express concern over market reactions to the tariffs, most of Trump's aides support the policy.
- The White House is focused on the perceived long-term political and economic benefits rather than short-term market volatility.