Shipping containers and gantry cranes appear alongside a fishing vessel at the Yangshan Deepwater Port in Shanghai, China, on Wednesday, Dec. 6, 2023. The release of China’s trade figures is expected on Dec 7.
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In mere hours, Trump tariffs will take effect, which includes a staggering 104% duty on imports from China.
Even as economists and CEOs express growing anxiety, officials within the Trump administration remain steadfast in their support of these trade policies. Treasury Secretary Scott Bessent remarked to CNBC on Tuesday that approximately 70 countries are eager to negotiate with the White House, while trade advisor Peter Navarro asserted Friday that the tariffs are non-negotiable. (Debate exists over whether seeking agreements constitutes negotiation.)
However, one member of the Trump team appears discontent with the tariffs. Elon Musk, without directly referencing the White House’s trade policies, labeled Navarro — the top trade advisor — as a “moron” and “dangerously dumb.” Musk holds a significant role in the Trump administration as the de facto DOGE leader and is also the CEO of Tesla, a multinational corporation.
Nevertheless, given the strong advocacy for tariffs from White House officials, Musk’s public disagreement with Navarro seems unlikely to alleviate tensions in global trade.
Key Updates for Today
Tariffs on the Horizon
The U.S. Customs and Border Protection will start enforcing President Donald Trump’s new tariffs on April 9, 2025, at 12:01 a.m. EDT, according to an agency statement. This includes a 104% duty on Chinese imports, a response confirmed by a White House official to CNBC after China’s own retaliatory tariffs. Treasury Secretary Scott Bessent stated on Tuesday that China’s response was “a significant error” and a “losing hand.”
Early Market Rally Erodes
U.S. stocks dipped on Tuesday, relinquishing early gains from a rally. The Dow Jones Industrial Average fell 0.84% after earlier being up 3.9% during the day. The S&P 500 declined 1.57%, while the Nasdaq Composite dropped 2.15%. The former has seen a decline of over 12%, and the latter over 13% in the last four trading sessions. In Europe, the regional Stoxx 600 index increased by 2.72%, led by insurance stocks, which rose 4.08%.
Microsoft Rises to Most Valuable Company Once More
Apple’s decline of 5% on Tuesday contributed to its total losses of 23% over the past four days, resulting in a market capitalization of $2.59 trillion. Consequently, Microsoft, valued at $2.64 trillion, is now recognized as the world’s most valuable public company. Apple is facing the brunt of the challenges facing large tech firms due to its dependence on China, with analysts stating that manufacturing iPhones in the U.S. isn’t feasible.
Musk Criticizes Navarro Again
Tesla CEO Elon Musk publicly criticized Trump’s trade advisor Peter Navarro, dubbing him “truly a moron” following Navarro’s statement that Tesla serves more as a “car assembler” than an actual manufacturer. White House press secretary Karoline Leavitt commented on the spat, stating, “Boys will be boys, and we will let their public sparring continue.” Tesla’s stock has declined by 22% over the past four trading sessions.
[PRO] Stocks Likely to Gain from Trade Agreements
U.S. Treasury Secretary Scott Bessent noted that about 70 countries have contacted the White House to talk about tariff proposals. Some of these nations may reach an agreement earlier, potentially boosting stocks of companies closely connected to business in those countries.
In Conclusion…
The airline sector has been beset by a series of challenges lately, including labor shortages, supply chain disruptions, and escalating fuel prices.
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Emirates President Tim Clark Signals ‘Uncharted Territory’ as Tariffs Impact Global Aviation
“Currently, we are navigating troubled waters,” remarked Emirates President Tim Clark in an interview with CNBC recorded on March 20 — preceding Washington’s announcement of the latest global tariffs.
“It’s an unprecedented situation, as it signifies a reset to a level that the global economy has probably not experienced since the financial crisis of 2008-2009,” Clark stated, highlighting the increasing stress faced by carriers and the ripple impact throughout the aviation supply chain.
Tim Clark provided a pointed perspective on the Trump administration’s motivations, framing this trade escalation as a strategic “trade reset” aimed at transforming global commerce — although he cautioned it could lead to “troubled waters” in the interim.
