Stock market futures slip ahead of Trump’s ‘Liberation Day’ tariffs
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(NEW YORK) — Stock markets struggled into Wednesday morning as it became clear that President Donald Trump intended to announce a slew of tariffs on America’s trading partners, with the White House preparing to mark what it is calling “Liberation Day.”
The S&P 500 and NASDAQ both posted their first quarterly losses since 2022 this week as investors prepared for the new measures and economists warned of the possibility of a recession — with major potential knock-on effects for other economies around the globe.
The Dow Jones, S&P 500 and NASDAQ futures were all slipping on Wednesday morning, with Dow Jones futures down by about 100 points.
Trump is set to make his tariff announcement in the White House Rose Garden on Wednesday after the stock market closes.
Abroad, the British FTSE 100 index dropped by more than 0.6% on Wednesday morning, with Germany’s DAX index down by 1.2%. The French CAC 40 index was down more than 0.5%.
Japan’s Nikkei index rose nearly 0.3%, but South Korea’s KOSPI index dropped by more than 0.6%.
On Tuesday, the Dow Jones ended at 41,989.96 down 0.03%. The S&P 500 ended at 5,633.07 up 0.38% and the NASDAQ ended at 17,449.89 up 0.87%.
Automakers and pharmaceutical companies have reportedly been lobbying the Trump administration for carve outs and a phase-in approach for the promised tariffs.
World leaders have threatened a response while pressing the White House for clarity.
(WASHINGTON) — An inflation report to be released on Wednesday will provide a fresh gauge of economic performance under President Donald Trump as markets slide and recession fears swell in response to an escalating trade war.
Economists expect the data to show that inflation eased in February.
Consumer prices are expected to have risen 2.9% over the year ending in February, which would amount to a slight slowdown from a 3% rate recorded in January.
Analysts and households alike will closely watch for movement in egg prices, which soared 53% in January compared to a year ago. Bird flu has decimated the egg supply, lifting prices higher.
The Trump administration has started investigating egg producers to learn if market practices have contributed to the price hikes, a source familiar with the matter told ABC News.
Inflation has fallen dramatically since a peak of about 9% in 2022, but a recent acceleration of price increases has placed inflation a percentage point higher than the Federal Reserve’s target rate of 2%.
If the report reveals a cooldown in February, that could soften pressure on the Federal Reserve, which bears responsibility for keeping inflation under control.
Federal Reserve Chair Jerome Powell last week said the administration’s tariff plan would likely raise prices for U.S. shoppers and retailers
The scale and duration of the tariffs remain unclear, but a portion of the taxes on imports will probably reach consumers, Powell told an economic forum in New York City last week.
“We’re at a stage where we’re still very uncertain about what will be tariffed, for how long, at what level,” Powell said. “But the likelihood is some of that will find its way. It will hit the exporters, the importers, the retailers and to some extent consumers.”
The stock market has plunged since Trump imposed tariffs on Mexico, Canada and China last week, giving rise to warnings on Wall Street about a potential economic downturn. Within days, Trump delayed some of the tariffs on Canada and Mexico.
On multiple occasions in recent days, the White House declined to rule out a possible recession, saying the tariffs would require a “period of transition.”
A solid, albeit disappointing jobs report on Friday exacerbated concerns among some observers.
Employers hired 151,000 workers last month, falling short of expectations of 170,000 jobs added. The unemployment rate ticked up to 4.1%, which remains a historically low figure.
The Trump administration slapped 25% tariffs on goods from Mexico and Canada, as well as 10% tariffs on imports from China. The fresh round of duties on Chinese goods doubled an initial set of tariffs placed on China last month.
A day later, Trump issued a one-month delay for tariffs on auto-related goods from Mexico and Canada. The carve-out expanded soon afterward with an additional one-month pause for goods from Mexico and Canada compliant with the United States-Mexico-Canada Agreement, or USMCA, a free trade agreement.
On Tuesday, Trump announced plans to add another 25% tariff on Canadian steel and aluminum, bringing the total to 50%. The move came in response to threats made by Ontario to cut off electricity to parts of the U.S., Trump said.
Hours later, Ontario Premier Doug Ford issued a joint statement with U.S. Commerce Secretary Howard Lutnick on X announcing the suspension of the 25% surcharge on electricity sent to the U.S.
The tariffs slapped on Canada, Mexico and China are widely expected to increase prices paid by U.S. shoppers, since importers typically pass along a share of the cost of those higher taxes to consumers.
A key gauge of consumer confidence registered its largest monthly drop since August 2021, the nonpartisan Conference Board said in February.
The share of consumers who expect a recession within the next year surged to a nine-month high, the data showed. A growing portion of consumers believe the job market will worsen, the stock market will fall and interest rates will rise, the report added.
ABC News’ Katherine Faulders and Soo Youn contributed to this report.
(NEW YORK) — U.S. stocks slid on Thursday in the first trading since President Donald Trump announced 25% auto tariffs, escalating a global trade war and prompting forecasts of higher car prices.
The Dow Jones Industrial Average fell 250 points, or 0.5%, while the S&P 500 dropped 0.5%. The tech-heavy Nasdaq declined 0.6%.
Shares of major U.S. automakers plunged in early trading. General Motors dropped more than 8%, while Ford fell nearly 3%. Stellantis — the parent company of Jeep and Chrysler — declined 4%.
Tesla, the electric carmaker led by Trump-advisor Elon Musk, bucked the trend. Shares of Tesla ticked up 1.5% in early trading on Thursday.
The 25% tariffs will be applied to imported passenger vehicles, including cars, SUVs, minivans, cargo vans and light trucks, according to a White House fact sheet released after Trump’s Oval Office remarks. The tariffs will take effect on April 3. The tariffs will also be applied to key imported auto parts, including engines, powertrain parts and electrical components.
The auto tariffs are set to target a sector that employs more than a million U.S. workers and relies on a supply chain intricately intertwined with Mexico and Canada.
Canadian Prime Minister Mark Carney on Wednesday called the measure “a direct attack on our workers.” The Canadian government plans to review its trade options, Carney said.
This is a developing story. Please check back for updates.
(NEW YORK) — Quiksilver, Billabong, and Volcom, known for their surf and skate products, are closing stores in the United States.
The parent company of the brick-and-mortar stores, Liberated Brands, filed voluntary Chapter 11 bankruptcy on Sunday, which will result in over 100 retail locations across the country being shuttered, according to a filing.
The company attributes its financial difficulties to several factors, including inflation demands as well as a significant change in consumer spending habits.
ABC News has reached out to Liberated Brands for comment but has not yet received a response.
“The Liberated team has worked tirelessly over the last year to propel these iconic brands forward, but a volatile global economy, consumer spending changes amid a rising cost of living, and inflationary pressures have all taken a heavy toll,” Liberated Brands said in a statement, according to Financier Worldwide.
The statement continued, “Despite this difficult change, we are encouraged that many of our talented associates have found new opportunities with other license holders that will carry these great brands into the future.”
The brands themselves are expected to continue under new management, the company said in a statement.
The announcement of these store closings follows other huge department stores such as Macy’s, Kohl’s and more that are also closing their doors at locations throughout the U.S.
In January, Macy’s announced the closure of 66 Macy’s non-go-forward store locations. Macy’s said it intended to close almost 150 underproductive stores in total over a three-year period.
These closures are a part of the Bold New Chapter strategy, which was announced in February 2024, with the goal of returning “the company to sustainable, profitable sales growth,” the company said.
Kohl’s also announced last month that it would be shuttering 27 underperforming stores and all would occur by April.
“As we continue to build on our long-term growth strategy, it is important that we also take difficult but necessary actions to support the health and future of our business for our customers and our teams,” said Tom Kingsbury, Kohl’s chief executive officer, in a statement.
