Following a downturn, a surge is on the horizon? President Donald Trump claims his tariffs will spark a stock market boom, yet investors are looking for proof that he’s open to striking trade agreements. Tellingly, Trump suggested he was open to deals, telling reporters “it depends” what other countries are willing to offer.
Barron’s:
Governments around the world have largely held off on retaliating so far, perhaps convinced the White House will relent, with the notable exception of China, which said Friday it would impose additional tariffs of 34% on all U.S. goods. Maybe other nations are paying attention to Trump’s son Eric’s claim that “The first to negotiate will win” in a post on social-media site X. Alternatively, they may just be taking their time before reacting to a complex situation.
I wouldn’t want to be the last country that tries to negotiate a trade deal with @realDonaldTrump. The first to negotiate will win – the last will absolutely lose. I have seen this movie my entire life…
— Eric Trump (@EricTrump) April 3, 2025
Trump’s personal and political history strongly suggests he is always open to a deal so long as it happens on his terms. But the choice to impose reciprocal tariffs means a series of bilateral negotiations, complicating hopes for a quick recovery.
Trump has so far shocked the market with his willingness to allow stocks to drop. Negotiation and an eventual rebound is still the most likely outcome but that doesn’t mean there won’t be a painful wait to get there.
MacDailyNews Take: It’s only painful to those who panic and sell, doing exactly the opposite of what smart investors, who’ve built a strong cash position precisely for moments like this, are doing.
Be fearful when others are greedy, and greedy when others are fearful. – Warren Buffett
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Donald Trump is not a bright man.
His a billionaire and you’re posting jabs on a tech site. Hmmm.
The Economist:
On economics Mr Trump’s assertions are flat-out nonsense. The president says tariffs are needed to close America’s trade deficit, which he sees as a transfer of wealth to foreigners. Yet as any of the president’s economists could have told him, this overall deficit arises because Americans choose to save less than their country invests — and, crucially, this long-running reality has not stopped its economy from outpacing the rest of the g7 for over three decades. There is no reason why his extra tariffs should eliminate the deficit. Insisting on balanced trade with every trading partner individually is bonkers — like suggesting that Texas would be richer if it insisted on balanced trade with each of the other 49 states, or asking a company to ensure that each of its suppliers is also a customer.
And Mr Trump’s grasp of the technicalities was pathetic. He suggested that the new tariffs were based on an assessment of a country’s tariffs against America, plus currency manipulation and other supposed distortions, such as value-added tax. But it looks as if officials set the tariffs using a formula that takes America’s bilateral trade deficit as a share of goods imported from each country and halves it — which is almost as random as taxing you on the number of vowels in your name.
We’ve finally got a President with balls again. “disposableidentity” wants do-nothing “America Last” presidents because he hates America and/or is too much of a pussy to change the status quo.
On April 2nd, President Donald J. Trump did something no other modern president has had the spine to do. He declared “Liberation Day” and slapped sweeping tariffs on the very nations that have been gutting the American economy for decades. A 10 percent universal tariff across all imports. Targeted, punitive tariffs up to 34 percent on bad actors like China. And guess what? We should be furious—not at Trump—but at the spineless presidents before him who let things get this bad in the first place.
Let’s be clear: these tariffs didn’t start a trade war. They responded to one.
For decades, our so-called allies and trading partners have been gleefully waging economic warfare on the United States, with the full permission — no, the encouragement — of prior administrations. China flooded our markets with cheap steel, violating trade norms and collapsing American mills. The European Union protected its own industries while slapping barriers on ours. Japan, Taiwan, and others enjoyed one-sided access to our consumers while shielding their own markets with layers of red tape and tariffs.
And what did our leaders do in response? They looked the other way. Smiled. Shook hands. Signed one-sided trade deals. Sold us out. They told us it was for the “global good,” for “peace,” for “prosperity.” But the only people prospering were in Beijing, Brussels, and Tokyo. In small-town Ohio, Detroit, and western Pennsylvania, all we got were pink slips and boarded-up factories.
Trump’s “Liberation Day” tariffs are long overdue justice. They’re a correction to a rigged game that’s been hurting American businesses, workers, and families for far too long…
Read more:
Kevin McCullough, Apr 03, 2025
Make America Poor Again 🙂
The US should have build better quality products. On the other hand you liked cheap product from China.If for example the US cars were better than you would not buy Japanese cars, right?
Now way many countries are going to build factories in the US. Where is the work force? Oh, wait these are immigrants now being deported by the the convicted orange criminal.
Past administrations have made good economic performance look too easy. America was winning, but it seems nobody could see it and everybody fell for Trump’s BS.
The truth is, running shoes, garments, electronics, and 10,000 other products will never be manufactured at scale in the United States. As one economist pointed out this morning on television, coffee will never be grown on American farmlands, and yet for everyone who drinks a cup every morning, it will be taxed by Trump.
Other countries can largely shift to domestic products. They will get stronger. Countries who don’t have domestic production can buy from Europe or Asia. Americans will be taxed every time they buy something from anywhere.
If a pair of Nikes was $100, now they’re $154, because they still can’t be made for that domestically, and never can be.
The automotive sector was faced with a difficult transition to EV’s, now without they are supply chains in Canada and Mexico the sector has to do that with one arm tied behind its back. Who else will buy an American car if you can get them cheaper from China or Europe?
Stocks are down and there’s no mechanism to bring them back up without giving up on these tariffs.
Fully agree with DISPOSABLE IDENTITY!!
US citizens will be hit much more than other countries. Trust is the US is gone and will takes decades to fix.
That’s a really important point. Trust.
Canada and Mexico had an iron-clad written agreement with Trump himself. That’s been broken. What country on earth would trust their economic future to a government that act acts that way? Will that trust be restored just because that particular administration is out of power one day?
You can’t negotiate with somebody who can’t be trusted.
The Biden administration was a loser on virtually every metric.
Get help for your TDS.
How does that orange kool-aid taste? You sir, are an imbecile. Wait, a cultist imbecile.
Don’t try to time the bottom with AAPL. Take advantage of this rare opportunity. In just a few months, you’ll be very happy.
This AAPL downturn is only a buying opportunity if, and only if, you have a pile of cash somewhere, which the majority of people do not have! The vast majority of people will be hanging on to their meager cash reserves (if they have any at all) because of all the financial uncertainty of the next several weeks/months.
That top 10% with cash reserves likely will wait out this downturn, and when they think things have bottomed out will start buying back into the market to expand their portfolios. The rest of the holders very likely will try to just wait it out, if they can.
Yes, the markets will return to growth. That’s pretty much a given. However, NO ONE knows when that will be. Six months? A year? Two years? Five years? A decade? Anyone who claims that today they can accurately predict the turn around is a liar, plain and simple.
I’m traveling in South America and people are laughing at Trump. They know he is an idiot.
Destroying what makes America great is about as dumb as you can get. This period in American history will go down as the point at which our role as the world power ceased. We’ve lost our influence and status as the most respected, admirable and aspirational country. What a dumbfuck. Please don’t delete this comment.