Job Cuts and Price Increases Drive Markets Down

Shares of GE HealthCare, known for its medical imaging and ultrasound devices, saw more than a 10% decline on Thursday following Trump’s tariff announcement. The company manufactures its products in over 20 countries and caters to customers in more than 160 nations worldwide, as stated on its website.

A GE HealthCare spokesperson shared with CNBC, “Our foremost objectives are to ensure unhindered deliveries of products and services to patients and customers, maintaining the best quality and value under all circumstances.”

The spokesperson continued, “This is a fluid situation. Our teams are actively exploring possible mitigation strategies as trade policies evolve, and we will provide an update during our next earnings call.”

Siemens Healthineers, a German medical technology firm, also experienced a nearly 7% drop in shares on Thursday. The company has yet to respond to CNBC’s requests for comment.

— Ashley Capoot

Trump’s extensive “reciprocal tariffs” impacted over 180 countries, ranging from major trade partners to obscure islands and remote areas.

The tariff strategy specifically targeted several external Australian territories, including Heard and McDonald Islands, among the most isolated locations on the planet, home to seals and penguins.

Norfolk Island, another Australian territory with around 2,000 residents, faced steep tariffs of up to 29%, despite Australia itself facing only 10% tariffs.

“It’s puzzling to think that Norfolk Island is perceived as a trade competitor to the vast economy of the United States, exemplifying that no place on earth is shielded from this,” remarked Australian Prime Minister Anthony Albanese, according to The Guardian.

Read the complete article here.

— Sawdah Bhaimiya

French President Emmanuel Macron has urged his nation’s companies to pause investments in the U.S. following the imposition of significant tariffs by Trump.

He stated that Trump’s tariffs come as a shock to global trade after hosting a meeting at the Élysée Palace with industry representatives affected by these major levies.

Trump’s strategy establishes a baseline tariff of 10%, with steep duties applied to several countries, including 34% on China and 20% on the European Union.

— Yun Li

Former Treasury Secretary Steven Mnuchin expressed his belief that “the market can adjust” to the new 10% baseline tariff affecting nearly all countries but hopes that steeper tariff rates will be “negotiated down.”

“I genuinely hope there’s a potential to lower them, as we’ve witnessed certain businesses that will take considerable time to relocate their manufacturing base,” he stated during an appearance on CNBC’s “Squawk on the Street.”

“We’ve observed significant negative reactions in the stock market, mainly among specific stocks,” he added.

— Kevin Breuninger

In another executive action signed on Wednesday, Trump eliminated the de minimis exemption for China and Hong Kong, permitting shipments valued under $800 to enter the U.S. without accruing duties.

This trade loophole has allowed budget manufacturers in China, such as Temu and Shein, to inundate the U.S. market with affordable goods.

This change will take effect on May 2, as per the executive order.

Trump had previously halted the de minimis initiative in early February but paused the action shortly after amid concerns it could overwhelm U.S. Customs and Border Protection.

— Kevin Breuninger

In a tough market day, shares of retailers — including Target and Nike — took significant hits.

Target, Nike, Wayfair, American Eagle Outfitters, Ugg and Hoka parent Deckers, and toymaker Hasbro all reached 52-week lows.

Retailers face challenging decisions ahead as they navigate increased costs from widespread tariffs on imports from countries like China and Vietnam, key manufacturing hubs for footwear, clothing, toys, furniture, and more.

Some brands, such as Steve Madden, have reduced their sourcing from China in recent years, moving more operations to countries like Vietnam. However, many goods imported from these alternative locations will also incur tariffs. For instance, imports from Vietnam are now facing a 46% tariff.

Certain retail sectors are particularly vulnerable: nearly one-third of U.S. footwear imports originated from Vietnam in 2023, according to the industry trade group Footwear Distributors and Retailers of America.

Barclays retail analyst Seth Sigman emphasized that retailers may struggle to absorb the substantial additional costs or pass them on to vendors.

“Unfortunately, some of this will inevitably lead to higher prices,” he remarked.

— Melissa Repko

CNBC’s senior economics correspondent Steve Liesman and on-air editor Rick Santelli engaged in an energetic debate about Trump’s tariffs and their implications for global trade.

The lively exchange occurred on “Squawk Box” following an appearance by Commerce Secretary Howard Lutnick.

Watch the complete discussion below:

Stellantis has temporarily suspended production at two of its assembly plants in Canada and Mexico due to tariffs.

Approximately 900 U.S.-represented employees at associated plants will face temporary layoffs alongside about 4,500 hourly workers at the Canadian facility. Though workers at the Mexican plant will still report to work, they will not be engaged in production due to contract stipulations, according to a company representative.

The downtime will commence on Monday and last for two weeks at the Windsor Assembly Plant in Ontario, Canada, while the Toluca Assembly Plant in Mexico will remain closed throughout April.

“We are continually evaluating the medium- and long-term impact of these tariffs on our operations, and we’ve decided to undertake immediate actions, including halting production at certain Canadian and Mexican assembly facilities,” stated Antonio Filosa, Stellantis North American chief.

— Michael Wayland, Michele Luhn

Vice President JD Vance argued that Trump’s trade agenda, combined with deregulation and tax policies, would eventually lower prices.

However, he also remarked, “changing the situation is not something that can be achieved overnight,” in response to questions about rising costs and their duration during an interview with Fox News Thursday morning.

Vance characterized the issue as a challenge the Trump administration inherited from the Biden administration.

“Fixing such issues takes time. We recognize people’s struggles and are doing our best to rectify the previous situation left for us, but it won’t be immediate,” Vance stated.

Many economists caution that Trump’s broad tariff policies could elevate prices and hinder growth, with some administration officials acknowledging that the duties will create at least short-term economic turmoil.

— Kevin Breuninger

Tariffs and economic uncertainties pose risks to the construction of new hotels by driving up the costs of building materials, according to Baird’s hotel analyst.

The expense of construction in the U.S. could increase by as much as 10% due to tariffs, particularly affecting materials largely sourced from China and Vietnam. This construction effort is already under duress compared to pre-pandemic due to elevated costs and interest rates.

“New signings and project starts might decelerate in the short term due to augmented macroeconomic and trade policy uncertainties. Consequently, project completion timelines are likely to be delayed,” he remarked in a note on Thursday, highlighting that Hilton, Marriott, and Choice Hotels International are particularly vulnerable to U.S. construction setbacks.

Hotel stock values were sharply down during morning trading, while airline stocks, already under pressure this year, dropped significantly as well. United fell by more than 12%, and both American and Delta dropped more than 8% each. Tariffs and prevailing economic weaknesses may dampen both leisure and business bookings, while the tariffs will raise aircraft acquisition costs.

— Leslie Josephs

Eric Trump, the son of the former president, asserted that the nations which negotiate a trade deal with his father will “succeed,” advising against being the last country to approach the former president for such deals.

“I wouldn’t want to be the last nation attempting to negotiate a trade agreement with @realDonaldTrump,” Eric tweeted.

“The first to strike a deal will prevail – the last will certainly lose. I’ve witnessed this pattern throughout my life,” he added.

However, in an interview on CNBC’s “Squawk Box,” Commerce Secretary Howard Lutnick dismissed the notion of countries obtaining exemptions from the new tariffs.

“I doubt the concept of exemption will come into play. It’s not a viable approach,” Lutnick stated. “Rather, our focus will be on establishing a fair trading environment globally.”

– Dan Mangan

Commerce Secretary Howard Lutnick rejected the possibility that certain imports from specific nations could receive exemptions from the new U.S. tariffs.

“I’m not sure the word exemption will play a role. It’s simply not an option,” Lutnick commented on CNBC’s “Squawk Box.”

“Our focus instead will be on ensuring fairness globally. Let’s work towards a more equitable trading environment,” he said.

Lutnick also cautioned other nations against implementing retaliatory tariffs against the United States.

“Retaliation isn’t effective on a global scale,” he commented. “Such actions are futile.”

Upcoming tariffs will likely raise the prices of footwear purchased by Americans and lead to lower quality merchandise, states a significant trade organization.

Trump’s tariff policy is “disastrous for American families,” claimed Matt Priest, CEO of the Footwear Distributors and Retailers of America.

The extensive new import duties will particularly impact footwear-producing countries like Vietnam and China.

“Our industry is already facing inflation-driven challenges, and this move will compel families to think carefully before making a purchase,” Priest commented in a statement.

These tariffs will “increase costs, reduce product excellence, and undermine consumer confidence,” he added.

Statistics indicate that almost all footwear is imported into the U.S. As of 2023, around 37% of footwear imports were from China, about 30% from Vietnam, nearly 9% from Italy, and 8% from Indonesia, according to the U.S. International Trade Commission.

— Melissa Repko

Pershing Square CEO Bill Ackman remarked on X, “Occasionally, convincing the other party that you’re irrational can be the optimal negotiation strategy.”

Ackman, who endorsed Trump during the 2024 election, consistently advocates for the president on social media.

Earlier on X, he argued that other countries should refrain from retaliating against the new U.S. tariffs.

— Kevin Breuninger

In light of a “shifting economy” and its standing as the leading U.S. producer of vehicles, Ford announced that it will be offering employee pricing to all U.S. customers from April 3 to June 2.

This offer excludes some larger models such as the Ford Raptor, the 2025 Expedition, Navigator SUVs, and Super Duty trucks.

In a statement, the company noted, “We are aware that this is a time of uncertainty for many Americans. We have the retail inventory to allow us this offer and plenty of choices for those needing a vehicle.”

Initial U.S. auto sales in the first quarter surpassed expectations as consumers rushed to purchase vehicles ahead of impending tariffs, which many anticipate will increase vehicle prices.

— Michele Luhn

On Wednesday, the White House released tariffs for 180 countries, which were generally about half of what the Trump administration claims each country has “charged” the U.S.

It didn’t take long for market analysts to try and decipher the formula, resulting in somewhat perplexing outcomes.

It appears the U.S. may have divided the trade deficit by the imports from specific nations to arrive at individual country tariffs.

This method does not align with standard tariff calculation practices and suggests the U.S. only focused on the trade deficit concerning goods, neglecting service trade.

Additionally, the U.S. seemed to have implemented a 10% levy in places where it has a trade surplus.

The Office of the U.S. Trade Representative later provided further information on its approach, including a formula, which closely mirrored the discussions occurring online, with some differences.

Read the full story here.

— Neelabh Chaturvedi, Asriel Chua

Trump quickly hailed the rollout of his “reciprocal” tariffs as a triumph.

“THE OPERATION IS COMPLETE!” Trump declared in an all-caps message posted on Truth Social.

“THE PATIENT LIVED, AND IS IN RECOVERY. THE FORECAST IS THAT THE PATIENT WILL EMERGE STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE. MAKE AMERICA GREAT AGAIN!!!”

These new tariffs have yet to be implemented.

— Kevin Breuninger

Trump’s 25% auto tariffs are now in effect; however, the consequences of these new levies might take years to become apparent.

The tariffs apply to any vehicles brought into the U.S., but even domestically assembled cars consist of thousands of parts sourced globally.

This situation has the industry on alert, monitoring potential upcoming tariffs on auto components.

Short-term, investors in the auto industry should prepare for continued fluctuations in the stock prices of automakers and suppliers, as per Wall Street analysts.

Read more about how the auto tariffs will impact individual vehicles and manufacturers here.

— Michael Wayland and Michele Luhn