Trump’s Tariff Fallout & Military Standards Equalization | 4.4.25

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What is the impact of Trump's tariffs on the global economy?

John Bickley 0:03
President Trump's tariffs stunned the world and caused a stock market sell-off, but Trump's team is standing strong.
Howard Lutnick 0:09
Let Donald Trump run the global economy. He knows what he's doing.
Georgia Howe 0:13
Will some short-term pain be worth the long-term gain?
John Bickley 0:17
I'm Daily Wire Editor-in-Chief John Bickley with Georgia Howe. It's Friday, April 4th, and this is Morning Wire. Defense Secretary Pete Hegseth announces the end of different military standards for men and women.
Here at the Defense Department, we are restoring the warrior ethos. That starts with standards and going back to basics.
Georgia Howe 0:41
And Colorado's Democrat-run Congress moves to make the state a transgender sanctuary.
John Bickley 0:46
Thanks for waking up with Morning Wire. Stay tuned. We have the news you need to know.
Brandon 0:55
Hey guys, producer Brandon here. By the end of this episode, another family farm in the U.S. will have closed. You, however, can spring into action by subscribing to Good Ranchers today to make a positive impact and support American farms and ranches. Support the tradition of American farmers and ranchers who have spent generations working to feed Americans with meat exclusively and locally sourced. Subscribe now at goodranchers.com for free bacon, ground beef, seed oil-free chicken nuggets, or wild-caught salmon in every order for a year, plus $40 off when you use code WIRED. Good ranchers, American meat delivered.
John Bickley 1:30
As promised, Donald Trump reset the global economy this week with unprecedented tariffs. Now foreign leaders, markets, and businesses are racing to react.

How are U.S. markets reacting to the new tariffs?

Georgia Howe 1:39
Daily Wire senior editor Cabot Phillips is here to discuss the monumental shakeup. So Cabot, Trump promised fireworks and we got them. What's the fallout so far?
Cabot Phillips 1:49
Yeah, it's hard to overstate just how historic this move was. There's no other word for it. For decades, presidents in both parties have almost universally embraced free trade policies and kept tariffs at a minimum. Trump's Liberation Day marked a fundamental shift in economic policy, the likes of which we have very rarely seen in modern history. Virtually every product entering the U.S. will now be slapped with at least a 10% tax. Many will face rates in excess of 30% or even 40%. Those numbers are some of the highest rates we've implemented in nearly a century. Markets took a tumble Thursday morning following the news, but President Trump woke up optimistic, conceding that the short-term impact could be painful, but the long-term benefits will be worth it.
Cabot Phillips 2:29
But there's no doubt this move is fraught with risk.
Georgia Howe 2:32
Now, earlier you mentioned markets. How much did they fall?
Cabot Phillips 2:35
Well, if you're a fan of buying the dip, you are in luck because Wall Street took a beating yesterday with trillions of dollars in market cap wiped out. Within hours of markets opening, the Dow plummeted 1,400 points. The S&P fell 4%. The Nasdaq fell 5%. Elsewhere, major U.S. brands with supply chains outside the U.S., like Nike, Ralph Lauren, and HP, saw double-digit declines. But it was midsize U.S. companies that were the hardest hit. The Russell 2000 index, which includes smaller stocks, opened down nearly 7%, and the U.S. dollar slipped to its lowest point of the year, sinking more than 2% compared to the euro, Japanese yen, and Swiss franc. Put simply, it was arguably the worst day on Wall Street since COVID wrecked the global economy.
Cabot Phillips 3:16
For their part, the White House urged patience, calling on Americans to trust Donald Trump's plan. Here's Press Secretary Caroline Leavitt making that case on CNN.
Caroline Leavitt 3:24
To anyone on Wall Street this morning, I would say trust in President Trump. This is a president who is doubling down on his proven economic formula from his first term. As the president declared yesterday, this is indeed a national emergency. And it's about time we have a president who actually does something about it.
Cabot Phillips 3:43
And look, there is no doubt this is a high-risk, high-reward plan. Some U.S. banks like Goldman Sachs raised the possibility of a recession to 35%. But in a best-case scenario, businesses bring manufacturing stateside, our trade partners lower their tariffs, and the U.S. brings in massive new revenues. Here's Vice President Vance defending the move on Fox.

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