Trump’s tariff threats and actions sparked a trade war that many economists threaten to undermine global economic stability. On Thursday, Trump said he would place a 200% obligation on wine and champagne imported from the EU in response to a target for US whiskey imports.
Meanwhile, the STAGFLATION outlook (meaning price increases as they shine) is on the rise. The data underlying this week’s two inflation reports show that the Federal Reserve’s priority measure of inflation remains rising in February, suggesting that Trump’s campaign promises are hampering their promise to counter price increases.
Treasury Secretary Scott Bescent said Thursday that the Trump administration is focusing more on the long-term health of the economy and markets than on the short-term movement. “I’m not worried about a bit of volatility over the course of three weeks,” he said on CNBC’s “Squad Work on the Street.”
Some commentators say the economic downturn is short and the decline in inventory only reflects a drop in appetite for risky assets like the biggest draws and stocks of high-tech companies that saw cryptocurrency.
“Investors are slipping down not because investors have determined the true cost of tariffs, but because the market suffers one of the regular seizures that are at risk,” wrote John LeCentaler, a market commentator and former vice president at Morningstar’s investment company, in a recent column.
No other investors have purchased it.
“The US economy is already beginning to suffer negative effects due to the growing uncertainty of policy,” Sheemasher, chief global strategist at Principal Asset Management, said in a note to clients on Thursday.
“It appears that the government is following the ‘veggie eating’ approach before dessert. Although import duties and federal employee employment cuts have been introduced in the first weeks of its presidential term, so far in 2025, the US economy has faced headwinds and has yet to smack its tail. ”
The Nasdaq is already in the correctional field. The Dow Jones industrial average is not, and remains about 300 points apart.