Live Updates on Trump Tariffs: Global Trade Response

Peter Navarro, the leading trade aide, downplayed the recent sharp sell-off in the market instigated by Trump’s aggressive tariff implementation, asserting that stocks are poised to bounce back and thrive shortly.

“The market will discover a bottom very soon, and from that point, we are heading towards a bullish boom, with the Dow set to reach 50,000 during Trump’s presidency,” he stated during an appearance on UJ Saturday. “The S&P 500 will experience a broad recovery, wages will increase, profits will rise, and life will be splendid here in America.”

The Dow Jones Industrial Average plummeted 2,231.07 points last Friday, marking the most substantial drop since June 2020 during the COVID-19 pandemic. This follows a 1,679-point decline on Thursday, an unprecedented occurrence of shedding more than 1,500 points on consecutive days. The S&P 500 decreased by 10% in two days, now down more than 17% from its recent peak.

— Yun Li

On Saturday, President Trump claimed that China has been “hit much harder than the USA, not even close,” amid the escalating trade conflict.

“They, along with many other nations, have treated us unsustainably poorly,” Trump stated on Truth Social. “We have been the foolish and defenseless ‘whipping post,’ but that ends now.”

He boasted about his extensive new tariffs, declaring, “We are bringing back jobs and businesses like never before.”

“Already, there has been MORE THAN FIVE TRILLION DOLLARS OF INVESTMENT, and it’s increasing swiftly! THIS IS AN ECONOMIC REVOLUTION, AND WE WILL PREVAIL. HOLD FIRM, it won’t be an easy ride, but the ultimate outcome will be historic. We will MAKE AMERICA GREAT AGAIN!!!” Trump proclaimed.

— Annika Kim Constantino

Eli Lilly CEO David Ricks cautioned that Trump’s broad tariff policy might ultimately hinder drug research and development within the pharmaceutical sector.

While Trump’s reciprocal tariffs exempted pharmaceuticals imported into the U.S., offering a temporary relief to drugmakers, industry leaders are still preparing for potential pharmaceutical-specific tariffs in the near future.

“We can’t break those agreements, so we have to absorb the tariff costs and make trade-offs within our companies,” Ricks shared in a Friday interview with the BBC. “Typically, that results in staff reductions or cuts in research and development, and I anticipate R&D will be the first area affected. That’s a disappointing outcome.”

Eli Lilly has been at the forefront of enhancing its U.S. production capabilities, committing $50 billion to establish and modernize new plants since 2020. These facilities are crucial for producing the company’s blockbuster weight loss and diabetes medications.

Nonetheless, Eli Lilly still largely relies on overseas manufacturing, particularly in Ireland, where it employs over 3,000 individuals and is in the process of building a new $800 million facility.

Ricks characterized the tariffs as a transformative moment in U.S. economic history.

“I believe this represents a turning point in U.S. policy, and it appears challenging to reverse course from here,” he opined.

— Annika Kim Constantino

Some automotive manufacturers are trying to seize the moment amid the tariffs, with industry analysts informing CNBC. Ford and Stellantis are launching employee-pricing initiatives, while Hyundai Motor announced it would hold off on any price increases for at least two months to alleviate consumer worries.

Automakers see these initiatives as a strategy to move vehicles off their lots and sustain or boost sales in the face of uncertain market conditions due to the tariffs.

“We acknowledge that these are uncertain times for many Americans. Whether it is navigating the complexities of a shifting economy or simply needing a dependable vehicle for your family, we aim to assist,” Ford stated in a Thursday announcement regarding the program. “We have sufficient retail inventory to facilitate this and an extensive selection for customers in need of a vehicle.”

— Michael Wayland

The Chinese Foreign Ministry remarked on Saturday that “the market has spoken” in response to the U.S. implementing sweeping new tariffs and urged the White House to de-escalate the growing trade conflict through “equal-footed consultation.”

U.S. stock markets saw a sharp decline for the second consecutive day on Friday, with all major indexes falling by over 5% as part of a global downturn.

Posting on social media alongside a visual of Friday’s U.S. stock market decline, Chinese Foreign Ministry spokesperson Guo Jiakun stated, “The trade and tariff war initiated by the U.S. against the world is baseless and unwarranted.”

— Sam Meredith

Following one of the most drastic two-day declines in history sparked by President Donald Trump’s introduction of punitive tariffs on numerous trading partners, the stock market is currently in a precarious position: it is coiled tightly for a near-term rebound, yet not fully adjusted for the complete fundamental repercussions of this policy as contemplated.

Bespoke Investment Group highlighted this unsettling moment, during which markets designed to produce the “wisdom of crowds” through rational, collective price-setting find themselves tethered to the whims of a president capitalizing on decades of anti-trade sentiment through the executive power to declare “emergency” tariffs.

Israeli Prime Minister Benjamin Netanyahu is anticipated to visit the White House on Monday to engage in discussions regarding the recently announced tariffs with Trump, according to three Israeli officials and a White House official.

This impromptu in-person meeting could be the first of its kind with a foreign leader aiming to negotiate a resolution to the tariff issues.

While Netanyahu’s office has yet to confirm the meeting, it is likely to encompass discussions about Iran and Israel’s conflict with the Palestinian militant group Hamas in Gaza. The visit was first reported by Axios.

During a phone call on Thursday, Trump extended the surprise invitation to Netanyahu, who was then visiting Hungary, after the Israeli leader raised concerns about the tariffs, as noted by the unidentified Israeli officials.

Under Trump’s extensive new tariff policy, it’s reported that unspecified Israeli goods exports to the U.S. face a 17% tariff. The U.S. is recognized as Israel’s closest ally and largest single trading partner.

An Israeli finance ministry official indicated on Thursday that Trump’s latest tariff announcement may affect Israel’s exports of machinery and medical supplies.

Israel had previously taken steps to eliminate its remaining tariffs on U.S. imports on Tuesday. The two nations entered a free trade agreement 40 years ago, resulting in about 98% of goods from the U.S. being tax-exempt.

— Reuters

Prior to Wednesday, Trump’s tariffs were viewed as a potential risk for markets and the economy, but one that could be managed. However, what unfolded has been a situation of economic and geopolitical disorder.

The turmoil commenced with Trump’s announcement in the Rose Garden on Wednesday evening, after market hours, when he declared 10% tariffs on every U.S. trading partner starting Saturday, along with different rates for 60 other countries that would take effect in a week. Almost overnight, the effective U.S. tariff rate was projected to surge from 2.5% to over 20%.

China reacted by instituting 34% tariffs on all goods, while leaders of the European Union are considering counteractions.

The market’s reaction was swift and severe, leading to a harsh two-day sell-off that pushed the Nasdaq Composite, home to major Silicon Valley brands that Trump had been courting, into a bear market.