Tariff turmoil
President Trump’s tariff week has arrived, and the world is none the wiser about what to expect. Among the unknowns: Who will get hit, and by how much?
Tariff tensions have fueled a $5 trillion stock market sell-off over the past six weeks, and Goldman Sachs economists have just raised their odds of a recession to 35 percent, warning that duties could sock global trade and raise inflation.
S&P 500 futures are in the red on Monday, with the benchmark index on pace for its worst quarter since 2022 as consumer sentiment plummets and investors nervously eye Friday’s jobs report.
Could the upheaval force Trump to change tack? The president and his team are giving mixed messages ahead of Wednesday’s expected announcement about reciprocal tariffs. On Air Force One on Sunday, Trump said he would be “much more generous” in meting out levies, but added that “all countries” are in the administration’s cross hairs, dashing hopes he’d draw up a short list.
(Trump prefers a “big and simple” tariff plan, The Wall Street Journal reports, suggesting exceptions could be hard to come by.)
Trump also warned of new targets this weekend, including “secondary tariffs” on Russia oil if Moscow muddled a cease-fire deal with Ukraine, and something similar for Iran.