Stocks plummet as Trump leans in on tariffs
Trump leans in on tariffs as stocks plummet
President Trump 's new tariffs on dozens of countries exporting goods to the U.S. sent markets into a massive meltdown Thursday, prompting fears of a global recession.
The Dow Jones Industrial Average closed with a loss of more than 1,680 points, falling 3.98 percent on the day. The S&P 500 index closed with a loss of nearly 5 percent, and the Nasdaq composite closed with a loss of nearly 6 percent.
Trump's tariff plan, revealed during an event at the White House on Wednesday, levies new taxes on imports from nearly every country.
Despite economic turbulence, Trump insisted Thursday that the rollout is ' going really well.' Trump has argued that his new tariffs will lead to more manufacturing and less foreign trade reliance for the U.S. He also has pointed to tariffs as a revenue-generator for the government.
'It was an operation, like when a patient gets operated on, and it's a big thing. I said this would exactly be the way it is,' Trump told reporters as he departed the White House to travel to Florida for the weekend. 'The markets are going to boom, the stock is going to boom, the country is going to boom. And the rest of the world wants to see if there's any way they can make a deal.'
He did not elaborate on whether he is open to negotiations with trading partners to reverse some of the tariffs.
The Hill's Alex Gangitano and Sylvan Lane have highlighted five key surprises from the Trump administration's play.
OTHER COUNTRIES STRIKE BACK
Countries around the globe responded to the tariff news with either threats of retaliation or calls for negotiation.
Canada will impose 25 percent tariffs on U.S. auto imports that do not comply with the U.S.-Mexico-Canada Agreement (USMCA) on free trade, Prime Minister Mark Carney announced Thursday. He said the move was a direct response to the 25 percent tariff levied on Canadian auto imports effective Thursday.
European Commission President Ursula von der Leyen said the European Union (EU) will respond with 'countermeasures' if negotiations don't produce a deal.
India's Trade Ministry said the country is engaged in ongoing talks with the Trump administration to try to hash out an agreement and expects to 'take them forward in the coming days.'
Their responses come after Treasury Secretary Scott Bessent attempted to dissuade other countries from hitting back with their own increases. He said during a Wednesday interview on Fox News's 'Special Report' that the U.S. is positioning for 'long-term' economic growth.
'My advice to every country right now is: Do not retaliate. Sit back, take it in, let's see how it goes. Because if you retaliate, there will be escalation. If you don't retaliate, this is the high-water mark,' Bessent said.
RIGHT, LEFT ISSUE REBUKES
Former Vice President Pence, who served alongside Trump during his first term, joined the chorus of voices criticizing Trump's economic game plan with a social media post calling the tariffs the 'largest peacetime tax hike in U.S. history.'
Others who have chimed in:
• Sen. Richard Blumenthal (D-Conn.) called the tariff gambit 'probably the most stupid economic step taken by a president in this generation.'
• Sen. Mitch McConnell (R-Ky.) warned it will trigger higher costs for 'producers and consumers across the board.'
• Billionaire businessman and Trump critic Mark Cuban hit the 'unrecognized failure of the Trump tariffs approach,' arguing Trump 'ignored entrepreneurs and innovators.'
VANCE IN DEFENSE MODE
Vice President Vance defended the tariffs in an interview on Fox News's 'Fox & Friends' before markets opened Thursday, saying Trump campaigned on taking the economy in a different direction: 'He promised it, and now, he's delivering.'
'I think it's useful for all of us to step back and ask ourselves, 'What has the globalist economy gotten the United States of America?' … A lot of people have gotten rich from American jobs moving overseas, but American workers have not gotten rich, and frankly American companies have not gotten wealthy from the increasing growth of foreign competitors manufacturing overseas,' he said.
NEGOTIATING TACTIC?
The Trump administration has stressed the president is serious about tariffs and trying to reposition the U.S. in the global economy beyond trade reliance.
But others close to Trump have suggested that the self-proclaimed expert dealmaker is using tariffs as a negotiating tactic.
Eric Trump, one of the president's sons, publicly advised affected countries to act quickly to negotiate with his father.
' The first to negotiate will win — the last will absolutely lose,' the vice president of the Trump Organization posted on social media Thursday morning. 'I have seen this movie my entire life…'
Former White House press secretary Kayleigh McEnany also suggested that the tariffs are a strategic move.
'I firmly believe that it's posturing,' McEnany said on Fox News, where she now works. 'This is the great dealmaker, the great negotiator. And he's someone who understands how to get to a good end result.'
MEANWHILE…
Sens. Chuck Grassley (R-Iowa) and Maria Cantwell (D-Wash.) — both Finance Committee members — have drafted bipartisan legislation that would give Congress more say over tariffs.
The measure, dubbed the Trade Review Act of 2025, would require the president to notify lawmakers of tariff changes within 48 hours and provide additional information about the rationale and possible impact on American businesses and consumers.
Presidential tariffs would sunset after 60 days if Congress doesn't pass a joint resolution in support, under the Grassley-Cantwell bill, and Congress would be able to stop a president's tariffs at any time with a resolution of disapproval.
What they are saying:
• Cantwell: ' This bill reasserts Congress's role over trade policy to ensure rules-based trade policies are transparent, consistent, and benefit the American public. Arbitrarily tariffs, particularly on our allies, damage U.S. export opportunities and raise prices for American consumers and businesses. '
• Grassley: ' For too long, Congress has delegated its clear authority to regulate interstate and foreign commerce to the executive branch.'
The proposal comes just hours after the Senate, with support from some Republicans, passed a resolution striking back at Trump's tariffs targeting Canadian imports. It's unlikely to move in the GOP-controlled House but was seen as a signal of disapproval of Trump's escalating tensions with Canada.
Senate Majority Leader John Thune (R-S.D.) had urged Republicans to vote against it, arguing it was a political ploy by Democrats to embarrass Trump.
💡 Perspectives:
• New York Post: Trump tariffs could stoke massive short-term pain for better trade deals.
• The Wall Street Journal: Trump's New Protectionist Age.
• Los Angeles Times: Trump's tariff strategy is worse than a gamble. It's a surefire loser.
• Chicago Tribune: Trump's foolish tariffs take the US economy back centuries.
Read more:
• White House defends not including Russia, North Korea on tariffs.
• Tech group CEO: Trump tariffs will 'drive inflation,' 'kill jobs.'
• Musk will remain 'a friend and an adviser' to Trump: Vance
• Trump levies tariffs on uninhabited islands.
• White House reschedules garden tours because of anti-Trump protests.
• Stellantis halts production at assembly plants in Canada, Mexico after Trump auto tariffs.
CATCH UP QUICK
A judge in the United Kingdom has ordered President Trump to pay more than $820,000 in legal fees for Christopher Steele, after Trump unsuccessfully sued the former British spy.
More than 275,000 layoffs were reported last month — hoisted largely by cuts to the federal workforce from the Department of Government Efficiency (DOGE).
New York City Mayor Eric Adams (D) is running for reelection as an independent after the dismissal of corruption charges against him.
A Pentagon watchdog is investigating Defense Secretary Pete Hegseth for his use of the messaging app Signal to discuss highly sensitive military information.
TikTok deal coming down to the final minutes
A deal on TikTok will be reached before Saturday's deadline to ban the video-sharing app in the U.S., Vice President Vance said Thursday.
'It'll come out before the deadline,' Vance said in a Fox News interview, referring to a deal for the app to divest from owner ByteDance and its connections to the Chinese government.
'We've got to wait a couple days to continue working on it, to finalize some things, and of course we're going to let the president announce whatever we ultimately decide.'
President Trump had similarly foreshadowed a looming deal in recent days, though no details have been made public about where things stand.
'We're working on TikTok. We have a lot of potential buyers. There's tremendous interest in TikTok,' Trump told reporters on Air Force One on Sunday.
National security aides ousted after activist talks to Trump
Multiple aides to the White House National Security Council (NSC) were fired after President Trump listened to far-right activist Laura Loomer 's questions about their loyalty.
A source familiar with the firing told Kellie Meyer of NewsNation, The Hill's sister network, that three senior officials and at least two junior officials were ousted.
Loomer acknowledged on social media that she had presented 'research findings' to Trump during an Oval Office meeting Wednesday.
The NSC and Trump's national security adviser Mike Waltz have been at the center of controversy and speculation about a group chat mishap on the Signal app that led to a journalist's inclusion as high-level officials discussed plans for a military strike against Houthi rebels in Yemen last month.
Sources told The Hill that Trump resisted calls to fire Waltz because he did not want to be perceived as bowing to pressure from the media and Democrats.
White House press secretary Karoline Leavitt told reporters last week that tech billionaire and presidential adviser Elon Musk was helping the administration get to the bottom of the tech mishap.
Loomer has been a long-time ally of the president an leaned on Trump in the past, including during a recent dispute with Musk over her account on his social media platform X.
Trump told reporters on Air Force One on Thursday afternoon that he 'sometimes' listens to recommendations from Loomer, who he called 'a great patriot,' but he denied she was responsible for the ouster of multiple national security aides.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Wire
27 minutes ago
- Business Wire
SINOVAC Board of Directors Alerts Shareholders to Advantech/Prime Success' New Lawsuit, Which Threatens to Prevent Payment of US$55.00 Special Dividend to All Valid Shareholders
BEIJING--(BUSINESS WIRE)--The Board of Directors of SINOVAC Biotech Ltd. (NASDAQ: SVA) (' SINOVAC ' or the ' Company '), a leading provider of biopharmaceutical products in China, today disclosed that on June 12, 2025, Advantech/Prime Success filed a Petition for Emergency Injunctive Relief against SINOVAC, et al., naming as relief parties Cede & Co., The Depository Trust Company, and Equiniti (the dividend paying agent retained by the SINOVAC Board), which may prevent the SINOVAC Board from paying the US$55.00 special dividend as scheduled on or about July 9, 2025. We learned that Vivo Capital's counsel informed the paying agent that Vivo would challenge the dividend and asked the paying agent to withdraw from facilitating the distribution of the US$55.00 dividend declared by the SINOVAC Board to all valid shareholders. The SINOVAC Board has an obligation to answer this Petition on behalf of all SINOVAC common shareholders to stand up to the egregious actions of Prime Success. We expect to file our Opposition Brief today at 5:00 p.m. Atlantic Standard Time, followed by a hearing on Wednesday, June 18. We continue to be shocked by the self-serving, unnecessary actions by Advantech and Vivo Capital (together known as the 'Dissenting Investor Group') against SINOVAC, threatening the rightful dividend payment to all valid SINOVAC common shareholders. These incomprehensible actions are unacceptable to the SINOVAC Board because: The Dissenting Investor Group has already pocketed more than US$1.1 billion in dividends from SINOVAC's operating subsidiary, while all SINOVAC's valid shareholders received nothing. An amount equal to the aggregate amount of cash that would be payable under the US$55.00 per common share special dividend in respect of the 2018 PIPE shares has been set aside by the SINOVAC Board in an escrow account managed by an independent third party pending final resolution of the legal proceedings, which the Dissenting Investor Group initiated. Thus, there is no risk whatsoever that the Dissenting Investor Group's allocations of the dividend will not be paid if the courts ultimately decide in their favor regarding the PIPE shares. These new actions by the Dissenting Investor Group go against their assertions of their support of the US$55.00 dividend payment in their letters to shareholders and raises the question – how can you trust anything they say in their letters or press releases? The SINOVAC Board will continue to fight these frivolous lawsuits, all of which aim to accomplish one thing: to allow the Dissenting Investor group to double dip on dividends. We feel certain we will prevail quickly in this and other proceedings. The SINOVAC Board is on a mission to restore fairness and deliver value to ALL SINOVAC shareholders. About SINOVAC Sinovac Biotech Ltd. (SINOVAC) is a China-based biopharmaceutical company that focuses on the R&D, manufacturing, and commercialization of vaccines that protect against human infectious diseases. SINOVAC's product portfolio includes vaccines against COVID-19, enterovirus 71 (EV71) infected Hand-Foot-Mouth disease (HFMD), hepatitis A, varicella, influenza, poliomyelitis, pneumococcal disease, etc. The COVID-19 vaccine, CoronaVac®, has been approved for use in more than 60 countries and regions worldwide. The hepatitis A vaccine, Healive®, passed WHO prequalification requirements in 2017. The EV71 vaccine, Inlive®, is an innovative vaccine under "Category 1 Preventative Biological Products" and commercialized in China in 2016. In 2022, SINOVAC's Sabin-strain inactivated polio vaccine (sIPV) and varicella vaccine were prequalified by the WHO. SINOVAC was the first company to be granted approval for its H1N1 influenza vaccine Panflu.1®, which has supplied the Chinese government's vaccination campaign and stockpiling program. The Company is also the only supplier of the H5N1 pandemic influenza vaccine, Panflu®, to the Chinese government stockpiling program. SINOVAC continually dedicates itself to new vaccine R&D, with more combination vaccine products in its pipeline, and constantly explores global market opportunities. SINOVAC plans to conduct more extensive and in-depth trade and cooperation with additional countries, and business and industry organizations. Safe Harbor Statement This announcement contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as 'may,' 'will,' 'expect,' 'anticipate,' 'aim,' 'estimate,' 'intend,' 'plan,' 'believe,' 'potential,' 'continue,' 'is/are likely to' or other similar expressions. Such statements are based upon current expectations and relate to events that involve known or unknown risks, uncertainties and other factors, including without limitation risks, uncertainties and factors related to the timing of filings, hearings and other litigation-related matters, all of which are difficult to predict and many of which are beyond the Company's control, which may cause actual results, performance or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.
Yahoo
28 minutes ago
- Yahoo
Asian shares are mixed and oil prices advance as Israel-Iran crisis escalates
HONG KONG (AP) — Asian shares were mixed on Monday and oil prices extended gains on worries that escalating Iran-Israel tensions could disrupt the flow of crude around the world. U.S. benchmark crude oil added 20 cents to $73.18 per barrel. Brent crude, the international standard, gained 95 cents to $75.18 per barrel. In share trading, Tokyo's Nikkei 225 added 1.3% to 38,307.74, while the Kospi in Seoul gained 0.9% to 2,920.57. Chinese markets were little changed after data for May showed stronger consumer spending but weaker factory activity and investment. A 6.1% year-on-year jump in retail sales was offset but lower than expected growth in industrial output, which rose 5.8% from a year earlier. Hong Kong's Hang Seng fell 0.1% to 23,864.20 and the Shanghai Composite Index added less than 0.1% to 3,378.78. Australia's S&P/ASX 200 fell 0.2% to 8,547.40. On Friday, oil prices jumped and stocks slumped after Israel's attack on Iranian nuclear and military targets. The S&P 500 sank 1.1% to 5,976.97. The Dow Jones Industrial Average dropped 1.8% to 42,197.79, and the Nasdaq composite lost 1.3% to 19,406.83. The strongest action was in the oil market, where the price of a barrel of benchmark U.S. crude and Brent crude, the international standard surged more than 7%. Iran is one of the world's major producers of oil, though sanctions by Western countries have limited its sales. If a wider war erupts, it could slow the flow of Iran's oil to its customers and keep the price of crude and gasoline higher for everyone worldwide. Beyond the oil coming from Iran, analysts also pointed to the potential for disruptions in the Strait of Hormuz, a relatively narrow waterway off Iran's coast. Much of the world's oil that's been pulled from the ground moves through it on ships. Companies that use a lot of fuel as part of their business and need their customers feeling confident enough to travel suffered some of the sharpest losses. Cruise operator Carnival dropped 4.9%. United Airlines sank 4.4%, and Norwegian Cruise Line Holdings fell 5%. They helped overshadow gains for U.S. oil producers and other companies that could benefit from increased fighting between Israel and Iran. Exxon Mobil rose 2.2%, and ConocoPhillips gained 2.4% because the leaping price of crude portends bigger profits for them. Contractors that make weapons and defense equipment also rallied. Lockheed Martin, Northrop Grumman and RTX all rose more than 3%. The price of gold climbed as investors searched for safer places to park their cash. An ounce of gold added 1.4% on Friday and was holding steady early Monday. Prices for Treasury bonds will likewise rise when investors are feeling nervous, but Treasury prices fell Friday, which in turn pushed up their yields, in part because of worries that a spike in oil prices could drive inflation higher. Inflation has remained relatively tame recently, and it's near the Federal Reserve's target of 2%, but worries are high that it could be set to accelerate because of President Donald Trump's tariffs. A better-than-expected report Friday on sentiment among U.S. consumers also helped drive yields higher. The preliminary report from the University of Michigan said sentiment improved for the first time in six months after Trump put many of his tariffs on pause, while U.S. consumers' expectations for coming inflation eased. On Wall Street, Adobe fell 5.3% even though the company behind Photoshop reported a stronger profit for the latest quarter than Wall Street expected. Analysts called it a solid performance but said investors may have been looking for some bigger revenue forecasts for the upcoming year. In currency trading early Monday, the U.S. dollar gained to 144.37 Japanese yen from 144.03 yen. The euro rose to $1.1537 from $1.1533. Sign in to access your portfolio
Associated Press
32 minutes ago
- Associated Press
Asian shares are mixed and oil prices advance as Israel-Iran crisis escalates
HONG KONG (AP) — Asian shares were mixed on Monday and oil prices extended gains on worries that escalating Iran-Israel tensions could disrupt the flow of crude around the world. U.S. benchmark crude oil added 20 cents to $73.18 per barrel. Brent crude, the international standard, gained 95 cents to $75.18 per barrel. In share trading, Tokyo's Nikkei 225 added 1.3% to 38,307.74, while the Kospi in Seoul gained 0.9% to 2,920.57. Chinese markets were little changed after data for May showed stronger consumer spending but weaker factory activity and investment. A 6.1% year-on-year jump in retail sales was offset but lower than expected growth in industrial output, which rose 5.8% from a year earlier. Hong Kong's Hang Seng fell 0.1% to 23,864.20 and the Shanghai Composite Index added less than 0.1% to 3,378.78. Australia's S&P/ASX 200 fell 0.2% to 8,547.40. On Friday, oil prices jumped and stocks slumped after Israel's attack on Iranian nuclear and military targets. The S&P 500 sank 1.1% to 5,976.97. The Dow Jones Industrial Average dropped 1.8% to 42,197.79, and the Nasdaq composite lost 1.3% to 19,406.83. The strongest action was in the oil market, where the price of a barrel of benchmark U.S. crude and Brent crude, the international standard surged more than 7%. Iran is one of the world's major producers of oil, though sanctions by Western countries have limited its sales. If a wider war erupts, it could slow the flow of Iran's oil to its customers and keep the price of crude and gasoline higher for everyone worldwide. Beyond the oil coming from Iran, analysts also pointed to the potential for disruptions in the Strait of Hormuz, a relatively narrow waterway off Iran's coast. Much of the world's oil that's been pulled from the ground moves through it on ships. Companies that use a lot of fuel as part of their business and need their customers feeling confident enough to travel suffered some of the sharpest losses. Cruise operator Carnival dropped 4.9%. United Airlines sank 4.4%, and Norwegian Cruise Line Holdings fell 5%. They helped overshadow gains for U.S. oil producers and other companies that could benefit from increased fighting between Israel and Iran. Exxon Mobil rose 2.2%, and ConocoPhillips gained 2.4% because the leaping price of crude portends bigger profits for them. Contractors that make weapons and defense equipment also rallied. Lockheed Martin, Northrop Grumman and RTX all rose more than 3%. The price of gold climbed as investors searched for safer places to park their cash. An ounce of gold added 1.4% on Friday and was holding steady early Monday. Prices for Treasury bonds will likewise rise when investors are feeling nervous, but Treasury prices fell Friday, which in turn pushed up their yields, in part because of worries that a spike in oil prices could drive inflation higher. Inflation has remained relatively tame recently, and it's near the Federal Reserve's target of 2%, but worries are high that it could be set to accelerate because of President Donald Trump's tariffs. A better-than-expected report Friday on sentiment among U.S. consumers also helped drive yields higher. The preliminary report from the University of Michigan said sentiment improved for the first time in six months after Trump put many of his tariffs on pause, while U.S. consumers' expectations for coming inflation eased. On Wall Street, Adobe fell 5.3% even though the company behind Photoshop reported a stronger profit for the latest quarter than Wall Street expected. Analysts called it a solid performance but said investors may have been looking for some bigger revenue forecasts for the upcoming year. In currency trading early Monday, the U.S. dollar gained to 144.37 Japanese yen from 144.03 yen. The euro rose to $1.1537 from $1.1533.
