What to know
- Fallout from the Trump administration's aggressive global tariff regime continues to hit global markets and frustrate geopolitics, while the president has shown no signs of backing down.
- China hit back at Trump's punitive 34% tariff with its own levy of the same percentage on U.S. imports.
- Long-standing U.S. allies across most of the world's largest economies reacted with a mixture of anger and despair as they vowed retaliatory tariffs and hinted at some of the measures they plan to use to soften the blow to their own economies.
- U.S. stocks are in the middle of another brutal and chaotic day, with major indexes dropping more than 3% each.
How Trump’s latest tariffs could affect your wallet
Trump’s sweeping new tariffs, on top of previous levies and retaliation worldwide, are expected to increase prices for everyday items. The trade wars have already roiled financial markets and plunged businesses into uncertainty — all while economists warn of potentially weakened economic growth and heightened inequality.
Which impacts will be felt by consumers and workers first? And what can households do in the face of so much uncertainty? Here’s what you need to know:
What are tariffs and how will they affect me?
Tariffs are taxes on goods imported from other countries. Companies buying foreign products pay the tariffs imposed on them — and, as a result, face higher costs that are typically passed on to customers.
Trump has argued tariffs will protect U.S. industries from unfair foreign competition and raise money for the federal government. But since so much of what we buy today relies on a global supply chain, steeper tariffs mean you’ll likely see more expensive prices from the grocery aisle to your next car repair.
“It is going to affect everything in the economy,†said Josh Stillwagon, an associate professor of economics and chair of the Economics Division at Babson College. “There’s this immediate price increase that’s going to be passed on to consumers here, basically as soon as the retailers have to buy new product.â€
Will the tariffs affect everyone equally?
No. Experts warn that these tariffs could escalate inequities. Low-income families in particular will feel the costs of key necessities, like food and energy, rise with fewer savings to draw on — significantly straining budgets.
Low-income households often “spend a larger share of their income on essential goods — whether it’s food or other basic products ... (like) soap or toothpaste,†said Gustavo Flores-MacÃas, a professor of government and public policy at Cornell University whose research focuses on economic development. Because of this, he said, “even relatively small price increases†will have disproportionate impacts.
Evidence of that disparity will only mount for big-ticket items. Dipanjan Chatterjee, vice president and principal analyst at Forrester, points to now-imposed auto tariffs, explaining that projected price hikes of thousands of dollars for a new imported car will be easier for those with larger salaries to absorb.
“That tax is more severe for people who earn less money,†said Chatterjee. “So it’s a regressive tax.â€
What about jobs?
Beyond more immediate price pressures, experts also warn that tariffs could contribute to unemployment or lower incomes down the road. Trump has argued that tariffs will bring manufacturing back to the U.S., but if businesses take profit hits or change their supply sources, there could be layoffs worldwide.
“It’s not just the price aspect and purchasing power decreasing,†said Flores-MacÃas. “As tariffs start to work their way through the economy .... low-income families’ jobs often will be the first to go. And those sectors of the population are most vulnerable.â€
Economist Susan Helper, former senior adviser for industrial strategy at the White House Office of Management and Budget, said that there are some cases where tariffs could raise wages, but this doesn’t look likely to be one of them.
“There isn’t enough certainty for businesses to invest and create new and better jobs,†she said. “It takes a few years at minimum to profit off a new facility or factory, and I don’t think people have the confidence that the tariffs will be stable enough that they will have a return on that investment.â€
Which consumer goods will be affected?
The tariffs announced by Trump Wednesday, on top of other levies that are already in effect, tax imports from nearly all of America’s trading partners. And U.S. shoppers currently rely on a lot of goods made abroad.
Fruits and vegetables, your next phone purchase, a pharmacy order, new clothes, or a trip to a mechanic who uses auto parts made outside of the U.S. could all be impacted.
The timing of when prices will go up comes down to inventory, Stillwagon said. Much of that will also depend on how businesses prepare and respond to the new levies. While companies may have stocked up on goods in anticipation of these tariffs, he expects some stores to see more immediate price increases.
Prices on perishable groceries will likely increase first, because supermarket inventories need to be replenished more frequently. But a range of other items — like electronics, household appliances, clothing and footwear — could also be affected in the coming weeks and months.
“Annual losses for households at the bottom of the income distribution are estimated to be $980 under the April 2 policy alone,†according to John Breyault, vice president of public policy, telecom and fraud at the National Consumers League, who cited an analysis from the Budget Lab at Yale. He said that tariffs will disproportionately affect clothing and textiles, with apparel prices predicted to rise 17%.
Consumers are also likely to feel the pinch of tariffs in home buying, Breyault said. The new taxes on building materials are estimated to increase the average costs of a new home by $9,200, according to an analysis by the National Association of Home Builders.
Rerouting supply chains to reemphasize domestic production is also very complex — and could take years. Stillwagon said there are some products, like bananas and coffee, that the U.S. simply can’t substitute to the same scale of production other countries provide. And even for goods that can be made in the U.S., there will still likely be inflation.
“A real worry here is that this won’t just be a one-time price jump,†he said.
For products like coffee, Helper predicts people will likely absorb costs, while changing their shopping choices when it comes to other products.
“I guess you could switch to Coca-Cola if all you want is the caffeine,†she said, lightly. “It will probably be good for California wines.â€
Can I do anything to prepare?
Stocking up on what you know you need is a start — but with limits.
“If there are things that you’re buying on a consistent basis — week to week, month to month — I think it’s not a bad idea to try to stock up in advance,†Stillwagon said. But it’s important to avoid panic buying like that seen at the start of the COVID-19 pandemic, he and others added. That could cause shortages to emerge sooner and prices to go up faster.
You also don’t want to buy a bunch of items that will eventually go to waste.
“If you do plan stock up on consumables, make sure you have a plan on how to store them properly so you don’t end up having to throw out that 20-pound bag of shrimp, for example, in a few weeks,†said Breyault.
It may also be time to look for substitutes. From electronics to clothing, Flores-MacÃas says that there could be more affordable secondhand or refurbished options to turn to. And Chatterjee noted consumers may want to start comparing prices of name-brands versus “private,†or generic, labels in major retailers. Others may turn to at-home solutions, he said, such as growing their own vegetables.
Overall, experts say you’ll need to evaluate your budget and consumption habits for the road ahead.
“This is not a hurricane that’s going to be around for seven days and everything goes back to normal afterward. And you stock up on toilet paper (temporarily),†said Chatterjee. “For all you know, this thing could be around until a different administration comes in and changes trade policy.â€
Is there anything to watch out for in the coming months?
Consumers should be on the lookout for even greater use of so-called “shrinkflationâ€Â on the grocery aisle, according to Breyault. Shrinkflation is a tactic consumer goods manufacturers use to hide cost increases by changing the design of packaging.
“Consumers can prepare for the inflation that the tariffs are likely to exacerbate by getting into the habit of checking the unit price of items on the grocery shelf,†said Breyault. “While not all states require it, where it is required, consumers can more easily compare the per unit price of one item — cereal, for example — to another item.â€
TikTok deal scuttled because of Trump’s tariffs on China
The president today said he would extend by 75 days the deadline for TikTok’s owner to find a non-Chinese buyer, averting what could have been another disruption of the app.
The decision came as something of a surprise, with Trump and top administration figures, including the vice president, sounding confident that a substantive resolution would be reached this week.
But that was before Trump’s sweeping tariffs — on China and other countries — went into effect.
A deal had been agreed to as of Wednesday, but the recently imposed tariffs on China presented a late breaking hurdle, two people familiar with the talks, who were granted anonymity to share details of private discussions, told NBC News. ByteDance representatives informed the White House on Thursday, after the tariffs were implemented, that China would not accept a deal until there could be negotiations around trade and tariffs, one of these people said.
U.S. electric vehicle industry is collateral damage in Trump’s escalating trade war
Trump’s tariff blitz has sent shock waves throughout every aspect of the global economy, including the auto sector, where multi-billion-dollar plans to electrify in the United States are especially at risk.
Here’s what consumers should know about the impact of tariffs on electric vehicles.
Where does EV adoption stand in the U.S.?
EVs accounted for about 8% of new car sales in the U.S. in 2024, according to Motorintelligence.com.
Some of those sales can be attributed to expanded tax credits for EV purchases, a Biden-era policy that spurred car buyer interest.
Tesla held a majority of U.S. EV market share in 2024, at 48%. But that share has declined in recent years, as brands including Ford (7.5%), Chevrolet (5.2%) and Hyundai (4.7%) began to offer a wider variety of electric models at better price points, according to Kelley Blue Book.
Electric vehicles remain more expensive than their gasoline-powered equivalents. New gas vehicles sold for $48,039 on average last month, Kelly Blue Book data says, while EVs sold for $55,273 on average.
Tariffs add on to the costs of an EV transition that was already volatile and uncertain, said Vanessa Miller, a litigation partner focused on automotive manufacturing at law firm Foley & Lardner.
What makes U.S. EV manufacturing so challenging?
Biden’s tax credits essentially required automakers to get more and more of their EV content from the U.S. or trade allies over the coming years in order for their vehicles to qualify. Automakers have worked to build an EV supply chain across the country and significant investment has gone toward these efforts.
EVs assembled here include Tesla models, the Ford F-150 Lightning and more. Tesla actually might be least vulnerable given how much of its vehicles come from the U.S.
Though the industry is growing, tariffs mean costs for automakers and their buyers will stay high and might go higher, as well as hike up the prices of the many parts of EVs still coming from China and elsewhere. From the critical minerals used in battery production to the vehicles themselves, China laps the U.S. industry.
Automakers were already pulling back on ambitious electrification plans amid shrinking federal support and are strapped for cash on what is the less lucrative side of their businesses.
What do the tariffs mean for EV pricing and inventory?
Higher prices might push car buyers to the used car market, but they aren’t likely to find much respite there.
If consumers don’t buy as many vehicles, automakers will have to prioritize their investments and manufacturing. That means the cars that buyers want and that are most profitable. Automakers still lose thousands of dollars on each EV they make and sell, but they make money from big, popular gas-guzzling pickup trucks and SUVs.
These manufacturers “have put a certain amount of investment into EVs, and it would probably be even more wasteful to completely walk away from them than it is to find the new level at which it makes sense to maintain production of them,†said Karl Brauer, executive analyst at auto research site iSeeCars.com. That level “will assuredly be lower than what it was,†he added.
Making fewer EVs won’t help bring their cost down further anytime soon.
Albert Gore, executive director of the Zero Emission Transportation Association, said in a statement the EV and battery sector is working to ensure that the American auto industry grows and that his group will work with the administration on productive trade policy.
“Tariffs on our longstanding trade partners, many of whom have committed billions in direct investment into U.S. factories, introduces uncertainty and risk into an industry that is creating jobs and bringing new economic opportunities to communities across the country,†Gore said.
How else have Trump’s policies stifled U.S. EV growth?
Trump has already taken a hatchet to federal EV policy. He campaigned on a vow to end what he called former President Joe Biden’s “EV mandate.â€
Biden’s EV policies did not require automakers to sell EVs or consumers to buy them, but they did incentivize manufacturers to increase their electric offerings in the coming years. Trump put an end to Biden’s target for 50% of all new vehicles sold in the U.S. to be electric by 2035 in his first days in office.
Also under Biden, Environmental Protection Agency and National Highway Traffic Safety Administration rules on vehicle greenhouse gas emissions and fuel economy were to get increasingly tougher, but could be met by automakers selling a growing number of EVs alongside more fuel-efficient gasoline-powered vehicles. Trump’s administrators are already reevaluating emissions standards.
He’s also likely to seek to repeal the tax credits.
Oil and gold plunged alongside stocks
The global stocks selloff sent money flooding into low-risk assets like U.S. government bonds, even as gold recoiled from yesterday's record high alongside a further slide in crude oil brought by fears that a trade war would cause a global recession.
U.S. Treasury yields fell sharply today after China’s retaliation against Trump’s tariff plan that caught markets off guard by its scope, although declines were curtailed after a solid U.S. jobs report.
White House touts 'economic prosperity' as economists warn of recession risk
The White House today touted that Trump unleashed “economic prosperity†this week — despite markets plunging for a second straight day on the news of sweeping tariffs.
“It was another highly successful week for the American people as President Donald J. Trump continues his relentless pursuit of strength, prosperity, and peace — and lays the foundation for America to be the global powerhouse for generations to come,†the White House said in a statement.
The statement did not mention the market turmoil, which included the broad-based S&P 500 closing down 6%, while Nasdaq fell 5.8% and the Dow Jones Industrial Average dropped more than 2,200 points, roughly 5.5%.
While the markets are not a direct measure of the economy, many Wall Street economists this week said that the new tariffs could lead to a recession.
Panama says it's seeking an exclusion from Trump's tariffs
Panama’s government said today that it is seeking an exclusion to the tariffs Trump announced earlier this week.
“The scope of this decision and ways to mitigate its impact are being analyzed, including efforts to exclude Panama from its application,†Panama’s government said in a statement.
Chances of a recession spike in betting markets
Betting markets that let people wager on current events are seeing a spike in expectations for a recession this year.
Kalshi, one of the most popular betting markets, now prices the chance of a recession at 62% — quite close to the 60% that JPMorgan analysts recently put out. That's up from about 42% before Trump's tariff announcement.
At Polymarket, the chance of a recession is priced at 56%, also sharply higher since the tariff news.
Dow closes down more than 2,200 points
U.S. stocks endured another brutal day, with major indexes each dropping approximately 6%.
The broad-based S&P 500 closed down 6%. The tech-heavy Nasdaq dropped 5.8%. The Dow Jones Industrial Average fell more than 2,200 points, or about 5.5%.
The Russell 2000 Index, which tracks the stocks of smaller U.S. companies, dropped by 4%.
It’s the second straight day of turmoil on trading floors, adding to weeks of declines. On Thursday, the S&P had its worst day since the early days of the Covid-19 pandemic. The Nasdaq Composite is now down 22% from its high in December, and the S&P 500 is about 17% off its high in February.
College grads are vulnerable in Trump's trade war, economist says
Economists are sounding alarms that a protracted trade war could hurt recent college grads, many of whom have already struggled to find work in a tightening labor market.
“It’s been tough to be in your early 20s with a BA, much less hard to be an older college educated worker secure in your job,†said Guy Berger, director of economic research at Burning Glass Institute, a labor-focused research firm, in a post on X Friday.
The U.S. added a surprising 228,000 jobs last month, according to federal data released Friday, but economists are already warning of turbulence ahead as employers digest the impact of tariffs on the global economy.
The unemployment rate for college graduates ages 20-24 hovered above 6% according Berger’s analysis of federal data, compared to about 3% for those between ages 25 and 34.
“But if/when layoffs pick up the pain will spread,†Berger wrote.
Schumer blasts Trump over golf trip, says Democrats will force vote on rescinding tariffs
Senate Minority Leader Chuck Schumer roasted Trump for visiting one of his Florida golf courses as stock markets plummeted over the tariffs fallout.
“While we’re here doing all of this, it’s my understanding that Donald Trump’s out at a golf course,†Schumer told reporters as he said he and other Democrats will force a vote on an amendment to rescind certain tariffs.
“Now I don’t know if he’s playing today or if he’s caddying for somebody,†the New York lawmaker said. “I don’t know if anyone trusts him to caddy, but that’s what he’s up to.â€
Schumer added: “It just shows the disconnect from this President and what we’re seeing with these tariffs.â€
The amendment Schumer touted would rescind tariffs that increase the cost of groceries, medicine, and other secondary goods that Trump has imposed since re-entering the White House in January.
Congress has power over tariffs, but stopping Trump isn’t likely as of now.
The Atlantic's Derek Thompson: ‘Completely reject’ the idea that tariffs will lead to abundance
In an appearance on CNBC, The Atlantic's Derek Thompson offered a forceful rebuttle of arguments that Trump's tariffs would be good for the economy long term.
Thompson recently co-authored a book with Ezra Klein, "Abundance," that advocates for the U.S. to pursue growth around housing and infrastructure.
"This is scarcity meeting scarcity. This is Trump saying we don’t have enough housing, so we need fewer immigrants, or we don’t have enough manufacturing in the U.S., so we need less trade," he said. "Abundance is a positive-sum way of looking at the economy. It says we can grow if we invest in housing. We can have a strategy that seeks to make more of what we need in the U.S. without trying to cut ourselves off from the entire global economy."
He added: "I completely reject the idea that what Trump is pursuing is anything like abundance."
Equity research analyst on Nintendo delaying Switch 2 preorders
American gamers were shocked Friday when Nintendo announced that it would not be taking preorders of its new game console because of Trump's tariffs, but equity research analyst Michael Pachter doesn't think there's anything to worry about.
He told NBC News that he doesn’t believe these tariffs will end up being enforced.Â
"It’s just too uncertain," said Pachter, managing director of equity research for Wedbush."They don’t want to tell people $449, when the price is going to be $500, $600 or $700. We don’t know."
The  Japanese electronics company said the game would sell for $449.99. But Trump said Japanese imports will have a 24% tariff, and Vietnam will be hit with a 46% tariff. That could cause the price of the console, the Switch 2, to skyrocket.
"It’s at the edge [of mass affordability]," Pachter said. "But for lower-income people, absolutely this matters. If you’re making 15, 20 bucks an hour, it’s like, 'Oh, Jesus, I got to work for two weeks to get enough take home pay to pay for this thing? That’s crazy.'"
One more hour (gulp) of trading
We've got one more hour of trading before the weekend. Strap in.
Major indices have continued their declines, each now down more than 5%.
The S&P 500 was down about 5.7%, with the Nasdaq just behind at 5.6%. The Dow had shed more than 2,000 points, or about 5%.
If these levels hold, the Nasdaq will have declined more than 20% from its December high, entering what's known as a "bear market."
Americans worry about their future after tariffs
Trump's tariffs are making many Americans feel uneasy about their future.
NBC News spoke to people in New York City's Herald Square to get an idea of what they're thinking about.
"The tariffs, I feel like it’s just going to be a domino effect in a negative way, and it’s not going to be how the administration is planning, and it’s going to affect all the wrong people," said Isabella Sapio, who works in fashion.
She said she doesn't think the economy is in a good place.
"I think as these countries get these tariffs, the prices that are gonna go up are on the consumer so at the end of the day, it’s ... the consumers who are then going to face these tariffs," she added.
David Gilbert said he was concerned about his retirement accounts, telling NBC News: "I’m retired, and any investments I have are not doing well right now."
Kathy Gilbert said she feels very "frustrated" about the state of the economy.
Daniel Keeling, who works in theater, agrees, saying the economy seems "shaky" right now.
"Of course, this is all going to trickle down," he said, expressing concern that people may have to choose "the bare necessities of life" over supporting the arts.
"You got to think about putting food on the table. You got to think about your children’s futures," he said. "I would love for people to have the money to go and support the arts, but people also need to eat."
Keeling said he thinks Trump has "put all of us in a very peculiar situation, and not just Americans, but the whole globe."
Shauna Gregory and Sharon Quenzer are also worried.
"It’s horrible. The tariffs are ridiculous," Gregory said. "I want to buy a house and I don’t feel like I’m going to be able to."
Quenzer said one of her biggest worries is social security "being there for us."
"How long do we have to work past what would be our natural retirement age?" she asked.
“My biggest concern is also, yeah, I don’t think I’m going to get to retire. I think I’ll be working well into my 70s," said Gregory, who works at a middle school. "Even with the retirement through the education system and my own retirement accounts, I don’t know how I’m going to do it. I’ve thought about moving to Canada."
U.K. won't 'rush to retaliate' amid talks with Australia, Italy about responding to Trump
U.K. Prime Minister Keir Starmer's office said he had held talks with the leaders of Australia and Italy in the wake of Trump's tariffs announcement — and that while the U.K. would not "rush to retaliate," it would continue to work with "like-minded countries" to confront the challenge Trump has posed.
"While the global economic landscape has shifted this week, it has been clear for a long time that like-minded countries must maintain strong relationships and dialogue to ensure our mutual security and maintain economic stability," the U.K. office said. “They all agreed that an all-out trade war would be extremely damaging and is in nobody’s interests, while agreeing to keep in close contact in the coming days."
Starmer will be holding further calls with international leaders this weekend, it said.
20 items most exposed to price shocks from Trump tariffs
The Trump administration’s plan to slap steep tariffs on goods from dozens of countries is expected to spike prices for consumers.
Some items, like leather goods, will see a bigger jump than others.
Prices for clothing and shoes, gloves and handbags, and wool and silk products will all increase by between 10% and 20% due to the tariffs Trump has so far imposed, according to the Yale Budget Lab analysis.
The cost of motor vehicles and car parts could swell by over 8%, according to the analysis.
S&P 500 and Nasdaq drop more than 5%, Dow sheds 1,800 points
U.S. stock markets slid into a steady decline after a brief morning bounce, with major indexes deepening already-considerable losses.
The tech-heavy Nasdaq Composite is down 5.2%, followed closely by the broad S&P 500 at 5.1%. The 30-stock Dow Jones Industrial Average has lost more than 1,800 points, about 4.6%
The Russell 2000 index of smaller companies is down 5.3%
Sen. Ted Cruz warns tariffs will cause higher auto prices
Sen. Ted Cruz, R-Texas, warned on social media that Americans can expect higher auto prices as a result of Trump's tariffs.
"I had a recent meeting with an American car manufacturer," he wrote on X. "He let me know that by June, Americans can expect an average price increase of $4,500 on American cars."
He then linked to his latest podcast episode, in which he called Trump's tariffs strategy a "long ball deep into the end zone" that could pay off massively if no trade war breaks out.
Alternatively, Cruz said: "If we’re in a scenario 30 days from now, 60 days from now, 90 days from now, with massive American tariffs and massive tariffs on American goods in every other country on Earth, that is a terrible outcome. It’s terrible for Texas, which obviously I care about deeply, and it’s terrible for America. It will hurt jobs and hurt America."
Jim Cramer says Trump’s tariff policy is risking a market crash
CNBC’s Jim Cramer ripped into the White House for the effect that its tariff policy is having on the stock market.
“I struggle for what the president’s game plan is because, if you wanted to make the market crash, I think you would go with this game plan,†Cramer said on “Squawk on the Street.†“I don’t like that game plan. I do not favor that. … It’s very disappointing.â€
Cramer, who runs the CNBC Investing Club, added, “It should not be in our country’s interest to have the market crash.â€Â He also said, “I respect our viewers’ 401(k) and IRA, and I don’t want them to be hurt for no reason because that’s their bedrock, and we don’t want them to stop [investing].â€
Hedge funds sell largest amount of stocks since 2010, Goldman Sachs says
Hedge funds across the world yesterday sold global equities on a net basis at largest one-day amount since 2010 amid a market meltdown, Goldman Sachs said in a note to clients today.
The bank said portfolio managers mainly added bets against stocks yesterday, although they also ditched long positions.
Trump administration should let countries negotiate tariffs, former Goldman CEO says
Former Goldman Sachs CEO Lloyd Blankfein believes President Donald Trump should let countries negotiate his newly announced “reciprocal†tariff rates.
“The switchboard at the WH must be burning up with gov’ts trying to surrender in this trade war. Why not give them a chance?†Blankfein said today in a post on X.
He added that Trump should allow the 10% baseline tariff to remain but delay the “reciprocal†tariffs by six months.
“Take the win! The Prez said he’d make us tired of winning…I’m there now!†he also said.
Trump’s tariffs rollout beset by confusion, uncertainty and mixed messages
President Donald Trump on Wednesday officially fulfilled a campaign promise to unleash sweeping tariffs, a move that has sparked fears of a global trade war and prompted a major question about what has become the centerpiece of his economic agenda: What’s his endgame?
In both size and scope, Trump’s ultimate blueprint for global tariffs — a 10% baseline tariff on virtually every country, with higher numbers on countries with which the United States has larger trade deficits — was more than most expected. It has left global financial markets tumbling and Trump’s Republican supporters trying to thread the political needle of not criticizing him while also understanding the economic peril the tariff plan may usher in ahead of 2026 midterm elections in which the GOP will try to defend its slim House and Senate majorities.
Trump’s team has so far not had a clear message on either explaining the strategy behind the tariffs that his political allies can echo or his thought process behind the decision to go much further than even supporters were expecting.
What’s more, multiple elements of the sweeping measures made it seem as if the administration rushed through the process — including its decision to levy tariffs on uninhabited islands and its initially listing tariff numbers on the White House list published Thursday that were different from the ones on the chart Trump held in the Rose Garden on Wednesday.
Powell signals keeping rates steady as Trump calls for him to slash them
Federal Reserve Chair Jerome Powell said the central bank intends to keep interest rates steady in order to counteract the ongoing effects of inflation and tariffs increases — minutes after Trump called for him to lower rates.
In prepared remarks Friday, Powell raised the prospect that the inflationary impacts from tariffs may be more than temporary and that the Fed was looking to head off that outcome.
“Avoiding that outcome would depend on keeping longer-term inflation expectations well anchored, on the size of the effects, and on how long it takes for them to pass through fully to prices,†he said.
While Powell acknowledged recession odds have increased and that uncertainty is high, "we still don't know where that comes to rest and we're going to have to see that through," he said.
Powell's speech came shortly after Trump called for him to lower interest rates.
"This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates," the president wrote in a post on Truth Social. "He is always 'late,' but he could now change his image, and quickly. Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69%, and Jobs are UP, all within two months — A BIG WIN for America. CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!"
Nintendo delays Switch 2 pre-orders
Nintendo is hitting reset on Switch 2 preorders in the United States.
The Japanese video game giant said it would no longer take preorders on its new video game console from U.S. buyers Wednesday, citing "the potential impact of tariffs and evolving market conditions."
Nintendo said an update on timing would come at a later date, and that it still plans to launch the console June 5.
The company just revealed details of the hotly anticipated Switch 2 two days ago, saying it would sell for $449.99. That same day, Trump revealed he would hit Japanese imports with a 24% tariff.
Nike rallies after Trump posts about call with Vietnam premier
Shares in Nike and other apparel makers that rely on Vietnamese production rallied today after Trump posted to social media that he had spoken with one of the country's senior political figures.
"Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S.," Trump wrote. "I thanked him on behalf of our Country, and said I look forward to a meeting in the near future."
Nike's stock climbed as much as 5%, while American Eagle, which also sources from Vietnam, soared 7%. Deckers, which owns Hoka and UGG, surged 6%.
The market’s ‘fear index’ is soaring
While the major stock indexes keep plunging this morning, a ticker symbol doing well is one most investors probably don’t want to see spiking: VIX.
VIX is the ticker symbol for the Chicago Board Options Exchange’s CBOE Volatility Index, and it’s a popular measure of the market’s volatility based on S&P 500 options.
Colloquially known as the “fear index†or “fear gauge,†a jump in VIX’s price is typically viewed as a sign of market stress and can result in higher demand for safe assets such as treasuries.
As of 11 a.m. ET Friday, VIX was trading at $40.86, up $10.81 — or 36%.
It's (trade) war
Any doubt that the U.S. is not involved in a trade war with China is just about gone.
"fair to say we are now in a us-china trade war," wrote political scientist Ian Bremmer on X, pointing to the retaliatory tariffs China announced today.
Minnesota speaker maker explains how tariffs will hurt his business
For more than 75 years, Misco Speakers of Minnesota has been assembling audio equipment in the United States. Owner Dan Digre says it is the last original equipment manufacturer of audio hardware in America.
But to assemble the speakers, Digre and his approximately 100 U.S. employees rely on importing component parts from Asia. And in an industry with lots of competition like his, every cent counts.
"It puts American manufacturers at a tremendous cost disadvantage," he said of the prospect of having to pay more for imports from overseas.
Digre says he is in favor of producing as much as possible in the U.S., but the economic "reality" is the parts that go into his speakers cannot be competitively produced stateside without forcing American workers to take wages closer to their Asian counterparts.
And that assumes that Americans even want to work in manufacturing, he said.
"Even in China," he said, "young people don’t want to be working in factories. They want to be influencers, or work in a retail environment. So that’s a big questions — who will work in these American factories?"
Mortgage rates sink on tariffs, but housing costs are still near a record high
Mortgage rates fell sharply Thursday following the Trump administration’s tariff announcement.
The average rate on the popular 30-year fixed loan plunged 12 basis points to 6.63%, according to Mortgage News Daily. That put it at the lowest level since October.
The massive sell-off in the stock market early Thursday sent investors fleeing to the bond market. That caused bond yields to drop. Mortgage rates loosely follow the yield on the 10-year U.S. Treasury, and they had been moving in a very narrow range since late February.
“While plenty of uncertainty remains over the finer points of Wednesday afternoon’s tariff announcement, markets have heard enough to brace for impact on global trade,†wrote Matthew Graham, chief operating officer at Mortgage News Daily.
The drop in rates comes at a good time for the housing market, as the historically busy spring season kicks into gear. But there are several other factors working against buyers and hitting home affordability hard.
For the four weeks ending March 30, the typical U.S. homebuyer’s monthly payment hit a record high for the second week in a row, reaching $2,802, according to Redfin, a real estate brokerage.
“Sale prices are up 3.4% year over year, and the weekly average mortgage rate is 6.65%, near its lowest level since December but more than double pandemic-era lows,†according to the report.
Even with a slight drop in mortgage rates Thursday, roughly 70% of households, or 94 million, cannot afford a $400,000 home; the estimated median price of a new home is around $460,000 in 2025, according to the National Association of Home Builders. This calculation was based on income thresholds and underwriting standards.
Stock push lower, Dow sheds 1,400 points
The market rout sparked by Trump's tariffs shows few signs of slowing.
Major indexes that started the day down sharply continued to decline throughout the morning. As of 10:42 a.m. ET, the Dow had dropped more then 1,400 points, or about 3.5%.
The broader S&P 500 was down 4.1%, and the Nasdaq had fallen 4.6%. The Russell 2000 index, which tracks the stocks of many smaller companies, was off 5.4%.
"More noise than signal": Economists brush off strong jobs report
Despite the 228,000 jobs employers added in March, analysts largely dismissed the numbers as a moment of quiet before the storm of Trump's tariffs.
“Unfortunately, that improvement in the pace of hiring is more noise than signal,â€Â said Joe Brusuelas, chief economist at accounting firm RSM. “Investors, the public and policymakers should anticipate hiring to continue to slow towards a pace of 100,000 due to the new tariff regime imposed on the U.S. economy this week.â€
Seema Shah, chief global strategist at Principal Asset Management, said next month’s jobs report would bring the “hard data.â€
“The market needed today’s number,†said Shah. “Everyone knows that economic weakness is coming, but at least we can be reassured that the labor market was robust coming into this policy-driven shock and therefore, the slowdown should not be overly steep.â€
Just how big are Trump's tariffs compared to the rest of the world?
Trump has framed his most recent tariffs as "retaliatory," but an analysis from the investment bank Evercore shows how the U.S. is now levying duties far in excess of other countries around the world.
WTO responds to reports of Chinese complaint against U.S.
The World Trade Organization confirmed Friday that it received a request for consultations from China with the United States regarding its tariffs.
Further information will be provided later on the WTO's website, an official said.
Oil prices sink 8%
Crude oil prices fell 8% this morning as the broader global asset sell-off triggered by Trump's massive tariff regime continued.
As of about 10 a.m. ET, West Texas Intermediate crude declined to $61.45, hours after China fired back with retaliatory tariffs on U.S. goods. In just over two months in office, Trump has hit Chinese imports with duties of 54%. That's in addition to tariffs imposed during Trump's first term and Joe Biden's tenure.
Trump lashed out at China in a Truth Social post this morning, saying it "panicked" in response to his action.
Trump: 'China played it wrong'
In another Truth Social post this morning, Trump hit out at China's retaliatory-tariffs response.
"CHINA PLAYED IT WRONG, THEY PANICKED — THE ONE THING THEY CANNOT AFFORD TO DO!" the president wrote.
Stocks tumble again after China fires back in trade war
The major U.S. stock indexes dropped sharply just minutes into Friday trading as President Donald Trump’s historic tariffs announcement — and fresh retaliatory duties imposed by China — sent further shockwaves through the global economy.
The S&P 500 fell more than 2%, deepening a decline that began in February. The index, which tracks 500 of the leading U.S. companies, is now down almost 14% from its peak.
The tech-heavy Nasdaq was down even further, sliding about 3%. The Dow Jones Industrial Average fell 1,000 points, or about 2.5%.
It’s shaping up to be a second-straight rough day for markets. On Thursday, the S&P 500 had its worst day since the early days of the Covid pandemic.
Major sell-offs in markets across the globe preceded the U.S. declines. European stocks veered toward a correction, having now declined 10% from recent highs. Asian markets also cratered.
China 'ready to take some pain' in growing trade war, expert says
Trump's tariffs on Chinese imports will not have come as a major shock to Beijing, with China appearing "ready to take some pain" in the growing trade war between the world's two biggest economies, Andrew Gilholm, head of China analysis at consultancy Control Risks, told NBC News in a phone interview.
"Beijing's been expecting this for a long time, and I think they believe they’re able to take the pain of the impact of this kind of trade war far longer than the U.S. is able to tolerate," Gilholm said. His comments came after China announced a retaliatory 34% tariff on all products imported from the U.S., matching the new measure from Washington.
"Obviously that hurts China more because they’re exporting a lot more to the U.S. than vice versa, but that’s why they've been going beyond tariffs recently," Gilholm said, noting additional measures taken by Beijing, including adding 11 U.S. companies to its "unreliable entities" list, blocking them from importing from or exporting to China, and putting 16 companies on its export control list.
Gilholm said China was likely hopeful for an eventual de-escalation of the trade fight. "I think they’re kind of hoping for the best but bracing for the worst," he said. "I don’t want to underestimate how difficult this is for them, but they’ve been bracing for this and preparing for this for years and I think ... they’re kind of ready to take some pain if necessary and they’ve been signaling that for a long time."
Trump: 'MY POLICIES WILL NEVER CHANGE'
President Trump addressed investors this morning by declaring his policies wouldn't change and saying: "THIS IS A GREAT TIME TO GET RICH, RICHER THAN EVER BEFORE!!!"
Trump posted the message on Truth Social as U.S. stock futures pointed to another rout in the markets, a day after the S&P 500 and the Nasdaq posted their worst days in five years.
Wall Street analyst warns of ‘economic Armageddon’ from Trump tariffs
Dan Ives, an analyst with Wedbush Securities financial group, is out with a note this morning warning that Trump’s tariffs shock will lead to “economic Armageddon†if not dialed back.
"Never have we ... seen a self-inflicted debacle of epic proportions like the Trump tariff slate over the last 36 hours," he wrote.
While the concept of reciprocal tariffs makes sense, Ives said, what Trump laid out in the Rose Garden instead was simply a crude measure of the U.S. trade deficits.Â
It is unrealistic to re-shore the entire tech supply chain, he said. As a result the tariffs will be especially harmful to the U.S. tech sector: The cost of electronics could surge as much as 50% for U.S. consumers and crush tech firms’ earnings.
That, in turn, would have a knock-on effect on tech’s investments in artificial intelligence.
"The concept of taking the U.S. back to the 1980s ‘manufacturing days’ with these tariffs is a bad science experiment that in the process will cause an economic Armageddon in our view and crush the tech trade, AI revolution theme, and overall industry in the process," he wrote.
IMF urges nations to work together with U.S. to resolve trade issues
The International Monetary Fund is urging nations to work together with the U.S. to resolve their trade issues.
IMF Managing Director Kristalina Georgieva said the organization is “still assessing the macroeconomic implications of the announced tariff measures,†and they “represent a significant risk to the global outlook at a time of sluggish growth.â€
Georgieva said she planned to share the results of their assessment later this month in Washington.
JP Morgan raises odds of global recession to 60%
JP Morgan has published a research note raising its odds of a global recession to 60% in response to Trump’s tariffs shock.
In a note released late Thursday titled “There will be blood,†JPM analysts said the tariffs represent the biggest tax hike to U.S. consumers since 1968. The analysts predict lasting damage to the U.S. economy from “sustained restrictive trade policies and reduced immigration flows,†while price increases will “eat into real labor income and, in turn purchasing power.â€
“A turn towards caution by households alongside a slide in business spending could well push the economy into recession next quarter,†they write.
A slowdown in the U.S. will likely cause a global recession, they conclude, as raising the cost of goods purchases that U.S. households and businesses value most “will prove costly and generate disruptions in global supply-chains.â€
“It will also promote inefficiencies as trade flows are redirected through countries with lower tariff rates,†they write.
“We view the full implementation of announced policies as a substantial macroeconomic shock not currently incorporated in our forecasts,†they conclude. “We thus emphasize that these policies, if sustained, would likely push the U.S. and possibly global economy into recession this year.â€
U.S. must 'reset the global order of trade,' Rubio says
The U.S. must "get back to a time when we were a country that can make things," and "provide jobs for Americans," Secretary of State Marco Rubio said today following a meeting of NATO foreign ministers in Brussels.
Responding to a question from NBC News on the potential impacts of the Trump administration's tariff announcement on European willingness to spend more on defense, Rubio said markets were "reacting to a dramatic change in the global order, in terms of trade" and were "adjusting to the new rules."
"They just need to know what the rules are. Once they know what the rules are, they will adjust to those rules," he said. Rubio maintained that the U.S. must "reset the global order of trade" in order to be able to create jobs.
“The president rightly has concluded that the current status of global trade is bad for America and good for a bunch of other people. And he’s going to reset it, and he’s absolutely right to do it," he said.
Bond yields dive as investors anticipate economic damage from trade war
Investors plowed into government bonds in anticipation of global growth slowing dramatically in response to China slapping tariffs on imports from the U.S.
Yields on bonds fell to 3.90%, the lowest level since before election day. When traders anticipate reduced growth, they demand so-called safe-haven assets like bonds that pay fixed income. When demand for bonds increases, their prices rise and yields fall.
The lower yields also coincide with increased bets that the Federal Reserve will be forced to cut interest rates to soften the blow from reduced economic activity.
While Trump has sought both lower bond yields — which influence other borrowing rates in the economy, like mortgage rates — and lower interest rates from the Fed, it may end coming at a high cost.
World economy 'in turmoil right now,' Kremlin says
Russia is keeping an eye on the "high level of turbulence on global markets" after Trump's sweeping tariffs yesterday, Kremlin spokesman Dmitry Peskov said today.
“I wouldn’t say it’s in our interest,†Peskov said. “Russia isn’t on the list for obvious reasons because we don’t have trade with the U.S. in any tangible numbers. There is no trade and economic relations.â€
But, he said Russia “can see that the global economy is reacting to these decisions quite emotionally.â€
“The world economy is in turmoil right now,†he added.
France's Macron condemns Trump's 'brutal' tariffs
French President Emmanuel Macron condemned Trump's tariffs on the European Union as "brutal and unfounded" last night as he warned that the measures would only hurt the U.S. economy.
“You don’t correct trade imbalances by putting tariffs in place,†Macron said, speaking in French, at a meeting with representatives from sectors affected by the decision.
"“Americans, be that businesses or the people, will come out of this weaker and poorer than yesterday,†Macron said, warning that tariffs were not the answer to the problem of deindustrialization in the West.
“And we need to hammer that point home,†he added. “And we need to stand strong because these decisions are not sustainable for the American economy itself.â€
U.S. stocks poised to sink further
The pain isn’t over yet for stock markets.
U.S. stock futures fell even further this morning after China announced it would retaliate against Trump’s massive tariffs with a 34% duty on American products.
S&P 500 and Nasdaq futures fell more than 2%, while Dow futures pointed to another 1,000-point drop of around 2.5%.
Yesterday, the Dow fell more than 1,600 points, while the S&P and Nasdaq had their worst days since the early stages of the Covid pandemic in March 2020.
China accuses U.S. of 'unilateral bullying' in response to Trump's tariffs, plans 34% tariff on American goods
The Chinese Finance Ministry said this morning the United States committed a "typical act of unilateral bullying" by imposing trade tariffs this week and said it would impose a new tariff of 34% on all U.S. goods from April 10.
Like many nations and multilateral blocs now caught in a trade war with the United States, China said Trump's plan "not only damages U.S. interests but also endangers global economic development and the stability of supply chains."
China urged the U.S. to cancel the plan and "resolve trade disputes through consultations in a manner of equality, respect, and reciprocity."
Jobs report expected to show hiring slowed in March ahead of Trump tariffs shock
The federal government will release the latest monthly jobs report today — but in the wake of Trump’s shock announcement Wednesday seeking to disrupt the global economy with broad tariffs on U.S. imports, the new labor market data for March will essentially end up reflecting a different era.Â
The Bureau of Labor Statistics will release the survey at 8:30 a.m. ET. Estimates from Dow Jones showed forecasts for about 140,000 net new payrolls, compared with 151,000 previously, with the unemployment rate unchanged for the month at 4.1%.Â
That would still represent a relatively healthy round of hirings, despite large federal job cuts enacted by Elon Musk’s Department of Government Efficiency. According to a separate report released yesterday by the jobs and career consultancy Challenger, Gray & Christmas, DOGE was responsible for about 216,000 reductions in the federal workforce. Challenger uses different data from the BLS to track job changes in the economy, so that number may not be picked up by the federal survey.
But if the general direction of the Challenger numbers is correct, it means that even before Trump’s Rose Garden speech this week, the economy was already showing a more significant slowdown that the new tariffs are likely to only aggravate.Â
China to impose tariffs of 34% on all U.S. goods from April 10
The Chinese Finance Ministry said today it will impose additional tariffs of 34% on all U.S. goods from April 10 as a countermeasure to sweeping tariffs imposed by Trump.
Administration officials and their allies not always on the same page
Trump this week officially fulfilled a campaign promise to unleash sweeping tariffs, a move that has sparked fears of a global trade war and prompted a major question about what has become the centerpiece of his economic agenda: What’s his endgame?
In both size and scope, Trump’s ultimate blueprint for global tariffs — a 10% baseline tariff on virtually every country, with higher numbers on countries with which the United States has larger trade deficits — was more than most expected.
It has left global financial markets tumbling and Trump’s Republican supporters trying to thread the political needle of not criticizing him while also understanding the economic peril the tariff plan may usher in ahead of 2026 midterm elections in which the GOP will try to defend its slim House and Senate majorities.
Trump’s team has so far not had a clear message to either explain the strategy behind the tariffs that his political allies can echo or his thought process behind the decision to go much further than even supporters were expecting. What’s more, multiple elements of the sweeping measures made them seem as if the administration rushed through the process.
GOP considers using the power of Congress to rein in president
Reporting from Washington
The fallout from Trump’s aggressive new tariffs has spurred Congress into action, with a growing number of Republicans joining Democrats to express interest in using their power to restrain him.
After the GOP-led Senate delivered a rare rebuke to Trump on Wednesday by voting to undo his tariffs on Canada, lawmakers in both chambers are weighing additional steps to rein him in. Senators are eyeing other mechanisms to rescind Trump’s existing tariffs while limiting his ability to impose new ones. And Democrats in the House are exploring ways to force a vote to revoke Canadian tariffs, putting out feelers to attract support from Republicans.
These efforts have a high bar for success as any resolution to undo Trump’s tariffs, or new law affecting his powers, would have to get around a presidential veto. But the level of support in Congress could affect the president’s political calculus around using taxes on imports to the U.S. as a centerpiece of his agenda.
What American consumers should buy before prices go up as a result of tariffs
As countries are reacting to President Trump’s announcements on tariffs, American consumers are bracing for a potential price hike in several products and goods
Trump says tariffs could provide leverage in TikTok talks
Trump defended his tariffs to reporters aboard Air Force One on Thursday, characterizing his decision to place penalties on imports from more than 180 countries and territories as a negotiating tactic to spur U.S. investments and aid in important business decisions, including the sale of TikTok.
“We have a situation with TikTok where China will probably say, ‘We’ll approve a deal, but will you do something on the tariff?’ The tariffs give us great power to negotiate,†Trump said.
Trump signed an order in January giving TikTok’s Chinese-based owner, ByteDance, until Saturday to sell the platform to a non-Chinese buyer or face a nationwide ban.
Trump told reporters today that “we’re very close to a deal†on TikTok. It is unclear whether Chinese officials have tried to tie the platform to tariffs amid the negotiations over its ownership.
Trump administration is sued over tariffs on Chinese imports
A conservative legal group has filed what it says is the first lawsuit aimed at blocking U.S. tariffs on Chinese imports, accusing Trump of exceeding his authority.
The lawsuit, filed yesterday in a Florida federal court by the New Civil Liberties Alliance, challenges Trump’s authority to impose the sweeping tariffs he announced on Wednesday as well as earlier tariffs he imposed on China under the International Emergency Economic Powers Act.
“By invoking emergency power to impose an across-the-board tariff on imports from China that the statute does not authorize, President Trump has misused that power, usurped Congress’s right to control tariffs, and upset the Constitution’s separation of powers,†Andrew Morris, the group’s senior litigation counsel, said in a statement announcing the lawsuit, which was filed on behalf of Florida-based retailer Simplified.
The 34% tariff on China that Trump announced Wednesday comes on top of two earlier 10% tariffs, bringing the combined total to at least 54%.
Chinese manufacturers warn of price hikes after tariffs
Stocks in Europe and Asia continue to fall
Reporting from London
European stocks continued to drop shortly after the market open today, albeit at a much slower rate than yesterday’s huge losses, as investors around the world continue to reassess their trades in the wake of the Trump administration’s announcement of sweeping global tariffs.Â
The Stoxx Europe 600 — an index of the largest European companies — slipped 0.9%, while the main indexes in Germany, France and the U.K. also fell less than 1%.Â
In the Asia-Pacific, Japan’s Nikkei 225 led declines in the region, closing the week down 9% for its sharpest drop in more than five years, according to Reuters. Markets in China, Hong Kong and Taiwan were closed for a holiday.
The banking sector is in European traders’ sights this morning, with a basket of financial stocks down 2.8%. Deutsche Bank, Commerzbank and Barclays all experienced steep drops of as much as 4%.Â
That’s in part because traders are now expecting lower economic growth following the tariff announcements. That may also lead to interest rate cuts from central banks, which would lower the amount commercial banks can charge customers for holding their money, as well as encourage people to borrow and spend rather than hold their money in banks.
European heavy industry stocks, such as those in companies dealing with oil and gas, chemicals and basic resources, also fell, while U.S. stocks were also expected to open lower after their worst sell-off since the market panic at the start of the coronavirus pandemic in March 2020.Â
The S&P 500, the Dow Jones Industrial Average and the Nasdaq were all expected to have much shallower opening losses of between 0.3% and 0.6%.Â