Scott Bessent
The US stock market, fresh off its third-best day in modern history, is sinking back into reality: Although President Donald Trump paused most of his “reciprocal” tariffs, his other massive import taxes have already inflicted significant damage, and the economy won’t easily recover from the fallout. The Dow, after rising nearly 3,000 points Wednesday, was set to open lower by more than 500 points.Traders were elated that Trump temporarily rescinded his so-called reciprocal tariffs, which aren’t really reciprocal, for 90 days. …Futures on Thursday also responded somewhat positively to the European Union’s announcement that it would temporarily pause its retaliatory tariffs on the United States in hopes of a negotiated trade agreement after Trump’s U-turn. …But even after Trump’s about-face, the reality remains stark: Economists said the economic damage is done, and many predict a US and global recession.
- CBC News: US official creates confusion by saying Canadian goods would face 10% tariff, later clarifies baseline tariff won’t apply
- BBC News: US pauses higher tariffs for most countries but hits China harder
- Guardian: China says Trump’s trade war ‘will end in failure’
- Bloomberg: China reaches out to others as Trump layers on tariffs