US stocks fell again on Thursday. Economic unrest is rising amid the possibility of President Trump’s trade war and government shutdown.
In particular, after slamming massive import taxes on global steel and aluminum imports, he kicked off on Thursday and threatened to respond to European Union measures with 200% tariffs on imports of EU wine and spirits.
The S&P 500 fell 1.4%. It is currently considered a revision as it has fallen by more than 10% from the height of February. According to the WSJ, the index’s first revision since October 2023 has lost an estimated $5.3 trillion since.
The NASDAQ, which was revised last week, fell 2% today. The Dow Jones industrial average fell 1.3%, nearly 550 points. Media and tech stocks were pretty much lower, with Warner Bros. down 5% and TKO down 4%. Netflix, Fox and Lionsgate fell by 3%, while Disney fell by 2%. The Giants Alphabet, Apple, Meta and Amazon have dropped. So far, tariffs have attacked goods rather than services, but they could have ripple effects on entertainment.
Legendary investor Warren Buffett recently called tariffs “acts of war” as he slapped them in countries around the world, including major trading partners in Canada, Mexico, China and the EU. He doubles when they retaliate or threaten. The president said he believes import taxes will ultimately bring manufacturing back to the US.
“In fact, tariffs — we’ve had a lot of experience with them — they’re an act of war to some extent,” Buffett said in an interview with CBS that aired in early March.
Earlier this month, the Trump administration walked some with 25% import duties on goods from Mexico and Canada. Canada has imposed retaliatory tariffs as anti-American sentiment grew. In terms of drinks, several Canadian provinces have taken US liquor stores from store shelves.
The president said today at Canadian tariffs, “I’m not going to bend at all.”
Taxing imports generally increases prices for US consumers. Clarity and sudden shortages are close every day and changing what the administration actually plans to do is the worst thing for a market where businesses can’t plan. Uncertainty is one of the reasons M&A Boom Wall Street wanted under Trump.
The customs talk began in earnest last month, driving inventory lower as it continued its spiral. Trump admitted that there may be some economic conflicts due to it, and did not rule out the recession before walking partially through it. But this situation has disappointed America, investors and almost everyone who owns stocks.
Data yesterday said that gave the market a short recession showed inflation subsided in February. But it didn’t last long. Most believe that the impact of tariffs has not yet been reflected in the numbers.
Meanwhile, the government’s efficiency department under Elon Musk has cut so many jobs that some market players fear it will hurt the economy. And the government closes close to Friday’s deadline as Senate Democrats could block the Republican spending bill.
