Markets plummet, a House revolt, and other big Washington news

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Apple News Today 12 min 7 speakers 6 chapters transcribed
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How have Trump's tariffs affected U.S. markets?

Shumita Basu 0:27
This is Apple News Today. We begin with the immediate fallout from Trump's sweeping tariffs enacted on Wednesday. Markets slid with U.S. stocks seeing their steepest decline in market value since March of 2020. JPMorgan economists said yesterday they believe there's a 60 percent chance of a global recession. President Trump defended the tariffs while standing outside Air Force One yesterday, saying they put America in the driver's seat.
Donald Trump 0:53
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, is there any way they can make a deal?
Shumita Basu 1:01
But lots of economists, from more liberal ones to more conservative ones, are waving red flags, saying the math just doesn't add up. Here's some reaction from CNBC's Jim Cramer on CNN yesterday.
Jim Cramer 1:13
The president said, listen, it's going to be reciprocal. So you do it. We do it. And that was going to be so good. And I really believed in it. And I feel like a sucker tonight because I am not a free trader and I do not believe in free trade. And I was just as tough, if not tougher than his people. But they screwed it up and they really made they did it a totally ill-advised way. And I was very let down as someone who really, truly believes the free trade is awful for the American working person. This is what they came up with. Jeez, come on. Have some gumption. Have some math.
Shumita Basu 1:43
Global reaction to the tariffs has been mixed. China quickly retaliated, hitting all U.S. imports with a 34 percent tariff. But The Wall Street Journal reports that other countries for the moment aren't jumping to retaliatory measures. The prime minister of Australia, for example, said his country wouldn't join a, quote, race to the bottom by retaliating.

What is the global reaction to U.S. tariffs?

Shumita Basu 2:03
Likewise, Japan and India, which both face tariffs upwards of 20 percent, have so far indicated no plans to invoke their own tariffs back at us. Today, American leaders and economists are watching for two key moments, a jobs report out this morning and later a speech on the economic outlook by Fed Chair Jerome Powell, particularly after the worst day for the markets in five years. On Fox News earlier this week, Vice President J.D. Vance was asked how Americans who are sitting at home worried about their bank accounts should prepare.
J.D. Vance (quoted) 2:36
What I'd ask folks to appreciate here is that we are not going to fix things overnight.
Shumita Basu 2:41
He went on to blame Joe Biden for our economic woes.
J.D. Vance (quoted) 2:44
We know people are struggling. We're fighting as quickly as we can to fix what was left to us, but it's not going to happen immediately.

How might tariffs impact smaller nations like Lesotho?

Shumita Basu 2:53
Meanwhile, there are broad consequences for some of the world's smallest and poorest nations. Reuters reports on the impact to Lesotho, a small African nation that Trump ridiculed as a country nobody has ever heard of last month in his joint address to Congress. The administration placed a whopping 50% reciprocal tariff on the country, the highest on the list. Exports to the U.S., primarily diamonds and textiles, make up more than 10% of Lesotho's GDP — An economist told Reuters that the tariffs will effectively kill the textile industry in the country. Due to the formula the administration used to calculate percentages, some of the poorest nations are facing the highest tariffs. Reuters also explains how some largely uninhabited territories and islands are facing tariffs, with some joking about penguins having to pay the cost. Now, if you are feeling nervous about the possibility of a recession, you're not alone. But it's not too soon or too late to start preparing your finances so you're in the best possible position.
Shumita Basu 3:57
USA Today's personal finance reporter recommends you first focus on paying off any credit card debt or high interest debt as soon as possible. As needed, try transferring that debt to another loan that has a lower interest rate. And if you're debt free, try to make sure you have enough money in savings to cover at least three months of living expenses.

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