Live Updates: Trump Unveils Tariffs and Administration News

Major Developments

Former President Donald Trump has announced sweeping new tariffs as he advances his domestic and foreign policy agenda. The latest updates on this significant move are covered here.

U.S. President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement event in the Rose Garden at the White House on Wednesday.

Oil Prices Plummet

 

On Thursday, oil prices dropped sharply amid concerns that Trump’s trade war could slow the global economy and that OPEC is oversupplying the market. US oil futures fell by 7%, reaching $66.52 a barrel, marking the worst day for crude since July 2022. Brent crude, the global benchmark, also saw a decline of 6%.

OPEC+ surprised investors by announcing that Saudi Arabia, Russia, and six other members would accelerate previously scheduled production increases starting in May. This unexpected decision heightened fears about the economic consequences of Trump’s extensive tariff escalation. Analysts suggest that if the trade war disrupts the flow of goods and services, it could diminish the demand for energy sources like crude oil.

Impact on Auto Industry

A trader runs on the floor of the New York Stock Exchange at the opening bell in New York City on Thursday.

Stellantis has announced that it has “paused production” at several of its Canadian and Mexican auto assembly plants due to the newly implemented tariffs. Consequently, around 900 US hourly workers who produce components for these plants will face temporary layoffs. The assembly plant in Windsor, Ontario, which manufactures the Chrysler Pacifica and Dodge Charger Daytona, will close for two weeks starting Monday, while the Toluca plant in Mexico will shut down for the remainder of April.

Stock Market Reactions

Charts that show the “reciprocal tariffs” the U.S. is charging other countries are on display at the James Brady Press Briefing Room of the White House yesterday in Washington, DC.

US stocks opened sharply lower on Thursday as global markets reacted negatively to Trump’s tariffs, raising fears of a potential recession. The Dow Jones Industrial Average fell by 1,500 points (3.6%), while the S&P 500 dropped by 3.95%, hitting its lowest level since September. The tech-heavy Nasdaq index decreased by 4.9%.

International markets also experienced significant declines, with Europe’s STOXX 600 index falling by 2.34% and Japan’s Nikkei 225 dropping by 2.77%. The sharp declines followed concerns that Trump’s tariffs could provoke retaliation from trading partners and destabilize the global economy.

Safe-Haven Investments Surge

President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House on Wednesday.

In response to the turmoil, investors flocked to safe-haven assets. Gold prices surged to a record high above $3,160 per troy ounce, and Treasury bond yields fell sharply, with the yield on the 10-year Treasury note reaching its lowest level since October. Gold has risen by 19% this year, marking its best quarter since 1986.

Administration’s Stance

Vice President JD Vance stated that Elon Musk will remain an adviser to him and Trump even after his term as a special government employee ends. He dismissed reports suggesting Musk would leave soon as “total fake news.” Vance emphasized that Musk’s work to make government more efficient is ongoing.

Regarding his own presidential ambitions, Vance mentioned that he and Trump would address that in 2028, referencing Trump’s comments about seeking a third term.

Trump’s Economic Claims

The day after announcing the new tariffs, Trump claimed, “the operation is over,” asserting that the US economy would emerge stronger. He declared a national economic emergency and introduced tariffs of at least 10% on imports from all countries, with higher rates for 60 nations with significant trade deficits with the US.

Global Reactions to Tariffs

Trade associations in Europe have criticized Trump’s tariff decision, calling it a “fundamental turning point in trade policy.” The head of the German Association of the Automotive Industry stated that all car imports to the US would now face a universal 25% tariff, while other EU exports would incur a 20% tariff.

Countries like Spain and Ireland expressed concerns that these tariffs would negatively impact their industries, with Spain’s wine sector facing significant challenges due to the imposed tariffs.

White House Response

White House Press Secretary Karoline Leavitt attempted to reassure investors about the tariffs, urging them to trust Trump’s economic strategy. She stated that the tariffs are a national emergency and that the administration is exploring options to mitigate potential negative impacts on American consumers.

Conclusion

As the situation develops, the implications of Trump’s tariffs on both the US and global economies remain a topic of intense discussion. With significant reactions from international leaders and various sectors, the long-term effects of these policies will be closely monitored.