Even bigger than the economic stimulus measures undertaken after 9/11 and the 2008 Banking Crash. They are moving towards a 10% baseline tariff on all imports under the pretext of a new “reciprocal tariffs” scheme. The measure is a bid to address trade deficits. To do this, it would first set a baseline, country-specific tariff that would include a uniform 20% tariff on the European Union, 32% on Taiwan, 34% on China, and 46% on Vietnam. As the White House pointed out, these elevated tariffs are only just over half of what these countries charge on goods coming into the U.S.
When news of the tariffs first surfaced, the stock market plummeted. Even Tesla Inc., one of the most important companies in today’s automotive landscape, saw wild swings in its stock price after the joint announcement. In the first half of the day Tesla stock got whalloped. The company blamed the number on 336,681 vehicle deliveries in its first quarter, a 13% drop from last year. This disappointment comes in the wake of continuing protests and boycotts over CEO Elon Musk’s participation – while still CEO of Tesla – in the Trump administration.
Tesla is in a precarious position. As speculation grows that Musk will soon depart his post in the White House, reports have surfaced that Musk’s influence is already waning. After these installments were published, Tesla stock bounced temporarily only to plummet again when news of the tariff was announced.
In response to the tariffs and their potential impact on international relations, Ursula von der Leyen commented on behalf of the European Union. She stressed that they are prepared to act. This strong language signals the EU’s determination to act should these negotiations with the U.S. falter. Von der Leyen further added, “We are now preparing for further countermeasures, to protect our interests and our businesses if negotiations fail,” signaling potential repercussions that could arise from the ongoing trade tensions.
When you take away Tesla’s woes, the news cycle in tech is dominated by big moves from other companies. Speaking of bids, Amazon has reportedly submitted a joint bid with TikTok. In a recent letter to Vice President JD Vance and Commerce Secretary Howard Lutnick, the company indicated it is ready to jump into the contentious social media space. Given the stakes associated with who owns which digital platforms, it’s not surprising that AppLovin is reportedly in talks to acquire TikTok.
The market’s reaction has been closely monitored as traders assess the implications of both the tariff announcement and Tesla’s performance. Scott Bessent noted, “What I would point out is that especially the Nasdaq peaked on DeepSeek day, so that’s a Mag 7 problem, not a MAGA problem,” referencing broader market dynamics that may influence investor sentiment.
As these changes play out, people from all sides of the public, private, and nonprofit sectors continue to watch closely. These tariffs will go into effect over the next few days. This shift will need to force companies and investors to reconfigure their plans to respond to the changed economic environment.