As tariffs on Trump turned into on the Mayhem stock market

By Wednesday, President Donald Trump’s tariffs had to become a problem for markets and economics, but managed.

So much for this idea.

Instead, there was something worse than the worst scenario that used to be where the United States is BSU’s real “back” trading partners that will comply with the tariffs levied in US exports.

In an ideal world that would call a round of negotiations that led to the transactions, with all parties can live as part of Trump’s efforts to change world trade trajectories, rethink US jobs and turn the United States from depending on cheap foreign imports and gorgeous production costs.

Fears around this scenario were focused on the sparks and perhaps a slight slowdown.

However, the economic, market and geopolitical pogrom actually appeared.

Started with On Wednesday, Trump’s press conference After closing the market, when the president read, it is almost joyful, his intentions to “snatch open foreign markets and destroy the foreign trade barriers.”

Plan: Take a look at 10% tariffs for each American partner, starting on Saturday, with individual tariffs for 60 other countries that started in a week. Almost the night, the effective tariff rate was set from 2.5% to the last 20%.

From the point of view, this can be the highest level since 1910-more than the devastating tariffs for the turmoil, which many economists believe that it contributes to great depression, putting a call on the anti-globalist, maximalist protectionism of Trump, which went beyond the worst fears of Wall.

A quick reaction

When Trump played a chicken with the rest of the world, he lost the first round.

China Revenge 34% tariffs On all goods, the European Union leaders also consider counteraction, and sudden antagonistic relations with Canada and Mexico should be smoothed during US-Mexico Konad Agreement talk in the coming months.

Markets gave up events by sending stocks to A vicious two -day sale This put Nasdaq composit, which lives in Silicon’s Silicon Valley Valley, which Trump cares in the first days of his second term, in the bear market.

The economists meanwhile were Hagest in rudimentary math It went into calculating tariffs. Essentially, the administration is in plan Washington Post reported It was cooked up to three hours before the announcement, simply divided the trade deficit with individual countries totaling US exports to develop “back” tariffs that seem to not meet their account.

According to the Center for Strategic and International Studies, Formula ‘punishes highly effective trading partners From which US is imported a lot and buy little, not necessarily those who have the most restrictive trade regime. “

“In short, the formula provides rough justice at best, blunting at the worst case,” the center said.

A market beating

Investors answered by selling everything except the bonds. After all, how can anyone know what the right price will pay for the future profit, if it is almost impossible to find out the future salary now?

According to the best scenario for Trump, other countries will come to the table and reduce tariffs, opening markets for US goods and allowing the US to access its markets. Even then, however, a huge rethinking of the economy, which in 2024 borrowed 68% of consumer activity and had a $ 903 billion deficit.

Of course, there were some early negotiations.

Trump Boasted Friday on the truth socially that he had a “very productive call” with the leader of the Vietnamese Communist Party to Lama, who allegedly agreed to reduce tariffs to zero if the transaction could be reached from the US, in addition, revealed Trump, revealed Additional interest in concluding a deal with China on Tiktok.

“Only the weak will not succeed!” Trump announced on Friday on the truth socially.

Although the stock market is definitely Dow Jones Industrial Medium In the two -day hemorrhage interval of more than 3900 points, which has never been done before.

Investors looking for a federal reserve system to drive to the rescue remained Friday when Chairman Jerome Powell pointed Trickets are more stringent, tariffs will make growth and, more importantly, increase inflation. Powell confessed that the central bank will remain in the interest rate scheme, considering hopes for the “Fed” to put the floor under the market massacre.

“I think Said on Friday on CNBC. “This is a samnan wound. This unexpected mistake must happen.”

However, the numbers are crunching on the almanacs of shares that do not see a full -fledged bear market, noting that the corrections similar to the current are transformed into a bear third.

But it depends on the president who was disobedient in his current position, promising on Friday that his “politics will never change.”

Such a decisive goal can play Trump fans, but this is also what the market is most scared.

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