Friday, 4 April 2025

Stock markets experienced their worst day since the Covid pandemic, with the S&P 500 falling 9.1% for the week and major indices closing significantly down. The sell-off was driven by investor uncertainty over Trump's tariff announcements and global recession fears, with approximately $2.5 trillion wiped from Wall Street.

China retaliated to U.S. tariffs by imposing 34% tariffs on all American goods imported into China, also barring select American companies from operating in Chinese markets. The retaliatory move further escalated the trade war and contributed to continued stock market declines globally.

The tariff rollout was marked by confusion and mixed messages, with unclear implementation details, exemptions for certain industries and donors, and a first lawsuit filed by a Florida stationery company challenging the legality of the tariff process. Reports indicated the White House bypassed required procedures in setting the tariffs.

Federal Reserve Chair Jerome Powell warned that Trump's tariffs will likely result in higher inflation and slower economic growth, while the International Monetary Fund cautioned of a 'significant risk' to the global economy from the trade measures. Multiple economic experts warned of potential recession risks.

Trump extended the TikTok sale deadline, which was originally set for Saturday, to avoid a ban. The president indicated he was considering decreasing tariffs to facilitate a deal with a non-Chinese buyer for the app.

The National Security Agency chief was fired as Trump removed another top military officer from his administration. Reports indicated far-right influencer Laura Loomer influenced the personnel changes at the National Security Council.

Democratic state attorneys general sued Trump over an order requiring new proof-of-citizenship and mail-ballot rules, arguing the president overstepped his authority. The Supreme Court also allowed the Trump administration to freeze millions in federal teacher-training grants related to diversity, equity and inclusion initiatives.

Ukrainians who had fled the war and were already in the U.S. expressed fear of deportation after Trump barred those in the country from renewing their two-year work permits and deportation protections. A migrant was also reportedly sent to a Salvadoran prison after immigration officers misidentified him.

The U.S. added 228,000 jobs in March despite Trump's deep cuts to the federal workforce, a figure significantly higher than February's 117,000 jobs added. However, the unemployment rate rose slightly to 4.2%, and the National Weather Service faced staffing shortages as many offices operated with 20% vacancy rates during preparation for deadly spring floods.

Over 80 former staffers of law firm Skadden, Arps, Meagher & Flom expressed outrage over the firm's deal with the Trump administration, accusing it of capitulating to alleged bullying. The incident reflects broader concerns about the Trump administration's attacks on law firms representing cases opposed by the president.