Wall Street takes a hit from uncertainty over Trump tariffs – WRGB
Now 35 Thu 51 Fri 48by Ahtra Elnashar | The National News DeskTOPICS:WASHINGTON (TNND) — Wall Street saw a challenging start to the week with the Nasdaq, Dow Jones, and S&P 500 all shedding value Monday as the private sector anticipated the economic fallout of what could be the United States waging an all-out trade war with Canada, Mexico, and China.”How is the market doing?” Trump asked reporters as they left the Oval Office Monday after the president signed a stack of executive orders. When he was informed of Monday’s sell-off, the president known for closely tracking the markets replied, “I don’t think about it.”Trump intends for the tariffs to hold allies and China accountable for the flow of fentanyl and illegal immigration into the U.S. Economists, however, warned that they would exacerbate inflation for Americans.By 10:30 a.m., President Trump and Mexican President Claudia Sheinbaum announced an agreement to pause the tariffs for one month to allow time for negotiations.”I’m confident that in a month, we will deliver results for both his people and Mexico,” Sheinbaum said. As part of the agreement, Mexico will deploy 10,000 troops to the U.S.-Mexico border to address the flow of fentanyl and undocumented migrants. “They’re going to keep them out, seriously out, otherwise they’re going to have a big penalty,” Trump said.In return, the U.S. agreed to assist in curbing the flow of weapons into Mexico. After two phone calls, President Trump and Canadian Prime Minister Justin Trudeau agreed on a 30-day pause, with Canada committing to a series of border safety measures. “In addition, Canada is making new commitments to appoint a Fentanyl Czar, we will list cartels as terrorists, ensure 24/7 eyes on the border, and launch a Canada- U.S. Joint Strike Force to combat organized crime, fentanyl and money laundering. I have also signed a new intelligence directive on organized crime and fentanyl and we will be backing it with $200 million,” Trudeau said in a statement.In a Truth Social post, Trump wrote, “As President, it is my responsibility to ensure the safety of ALL Americans, and I am doing just that.”Despite these agreements, a 10% tariff on Chinese imports is still set to take effect at 12:01 a.m. Tuesday. “And China hopefully is going to stop sending us fentanyl and if they’re not, the tariffs are going to go substantially higher,” Trump said. In response, China promised to bring a legal case against the U.S. to the World Trade Organization and take other countermeasures, adding to global market tensions.”The one market that’s gone up is oil prices. They’re up enough that they’re going to make it cost you an extra 80 cents to fill the tank of your car and again, that could go higher,” Jason Furman, former deputy director of the National Economic Council said. Economists and many politicians agree on the likely outcome for the country imposing tariffs. “It will drive the cost of everything up. In other words, it’ll be paid for by American consumers. I mean, why would you want to get in a fight with your allies over this?” former majority leader Sen. Mitch McConnell, R-Ky., told CBS. The White House countered predictions of rising prices for Americans, citing tariffs and low inflation during the first Trump administration, though the current tariffs are significantly larger in size and scope.
