this post was submitted on 03 Apr 2025
303 points (98.7% liked)

World News

45368 readers
5515 users here now

A community for discussing events around the World

Rules:

Similarly, if you see posts along these lines, do not engage. Report them, block them, and live a happier life than they do. We see too many slapfights that boil down to "Mom! He's bugging me!" and "I'm not touching you!" Going forward, slapfights will result in removed comments and temp bans to cool off.

We ask that the users report any comment or post that violate the rules, to use critical thinking when reading, posting or commenting. Users that post off-topic spam, advocate violence, have multiple comments or posts removed, weaponize reports or violate the code of conduct will be banned.

All posts and comments will be reviewed on a case-by-case basis. This means that some content that violates the rules may be allowed, while other content that does not violate the rules may be removed. The moderators retain the right to remove any content and ban users.

Lemmy World Partners

News !news@lemmy.world

Politics !politics@lemmy.world

World Politics !globalpolitics@lemmy.world

Recommendations

For Firefox users, there is media bias / propaganda / fact check plugin.

https://addons.mozilla.org/en-US/firefox/addon/media-bias-fact-check/

founded 2 years ago
MODERATORS
NewsAutoMod@lemmy.world
jordanlund@lemmy.world
Tenthrow@lemmy.world
little_cow@lemmy.world
lemmyAtom@lemmy.world
303
Dow drops 1,400 as US stocks lead worldwide sell-off after Trump's tariffs ignite a COVID-like shock (apnews.com)
submitted 1 day ago by cm0002@lemmy.world to c/world@lemmy.world
29 comments fedilink hide all child comments
 

Everything from crude oil to Big Tech stocks to the value of the U.S. dollar against other currencies fell. Even gold, which has hit records recently as investors sought something safer to own, pulled lower. Some of the worst hits walloped smaller U.S. companies, and the Russell 2000 index of smaller stocks dropped 5.9% to pull it more than 20% below its record.

Wall Street had long assumed Trump would use tariffs merely as a tool for negotiations with other countries, rather than as a long-term policy. But Wednesday’s announcement may suggest Trump sees tariffs more as helping to solve an ideological goal than just an opening bet in a poker game. Trump on Wednesday talked about wresting manufacturing jobs back to the United States, a process that could take years.

If Trump follows through on his tariffs, stock prices may need to fall much more than 10% from their all-time high in order to reflect the recession that could follow, along with the hit to profits that U.S. companies could take. The S&P 500 is now down roughly 11% from its record set in February.

“Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,” said Sean Sun, portfolio manager at Thornburg Investment Management, though he sees Trump’s announcement on Wednesday as more of an opening move than an endpoint for policy.

top 29 comments
sorted by: hot top controversial new old
[–] Initiateofthevoid@lemmy.dbzer0.com 12 points 18 hours ago (1 children)

The evidence that Trump's Administration themselves cited in their official explanation of their tariff "calculations" (trade deficit / imports) flat out states that when the US tries to tariff other countries:

  1. American importers pay for the US tariff AND
  2. American exporters pay for the foreign retaliatory tariffs.

The source (Cavallo et al, 2021) clearly demonstrates that American tariffs are paid directly by Americans in both directions, meaning out of everyone on Earth, US tariffs screw the US the most. Trump's administration legitimized the source by citing that research for its calculations on the tariff rates.

The Trade Representative's explanation freely admits that the stupid parameters were chosen more or less arbitrarily, and they cited the paper to justify their position on tariff price throughput but conveniently didn't list it in their "References" section.

Our analyses indicate that the price incidence of US import tariffs falls largely on the United States... Our results suggest that retailers are absorbing a significant share of the increase in the cost of affected imports by earning lower profit margins on those goods... [These analyses reveal] that the recent tariffs applied by foreign governments on US exports have affected total foreign import prices far less than was the case for the recent US tariffs

[–] nova_ad_vitum@lemmy.ca 9 points 18 hours ago (1 children)

None of the supporters of this are going to read any of that.

[–] Initiateofthevoid@lemmy.dbzer0.com 9 points 17 hours ago* (last edited 17 hours ago)

Plenty of people supported Coolidge and Hoover until they felt it in their wallets. This is going to hurt, for everyone, and it will provide opportunities to change minds. Not just the minds of Trump supporters, but the minds of everyone who thinks there's no point fighting. We have a lot of common ground opening up beneath our feet.

This is a terrible mistake for them to make. The Republican party has made this mistake before. It lead to the New Deal. History sure is rhyming, and things aren't playing out quite the same, but we have a chance - however small it is - to take advantage of their mistake again, and turn things around.

[–] venotic@kbin.melroy.org 49 points 23 hours ago (2 children)

tariffs merely as a tool for negotiations with other countries

Again, he doesn't know or care about how tariffs work. It's a tax. Not a negotiation. The dumbfuck doesn't know HOW to negotiate unless it's to benefit himself. Wall Street are equally as stupid.

To negotiate with another country, you simply visit them or contact them to actually you know - negotiate the best course of options or actions to take to make things a win-win for everyone. Something Trump never had.

[–] IrateAnteater@sh.itjust.works 38 points 23 hours ago (1 children)

He's adding tariffs to uninhabited islands, and islands that do no trade with the US. He has no idea how any of this shit works.

[–] ExtantHuman@lemm.ee 19 points 23 hours ago

Someone must have thrown a fish to a penguin there once, giving US a 100% trade deficit...

[–] takeda@lemm.ee 28 points 23 hours ago

He actually knows. He acts like a dumbass but everything he does hurts West and helps Russia.

This is at the same time when Russia is growing their army to 2.4M with goal to march on Baltics and Poland.

The idea is that the US and Western Europe will be preoccupied with their own issues to do anything about it.

[–] OutlierBlue@lemmy.ca 17 points 20 hours ago

End of the day the Dow was down 1,679.39

[–] SunshineJogger@feddit.org 38 points 23 hours ago (2 children)

Oh, good that I bought cryptos and etfs instea.... Oh fuck.

Ah well, this timeline is this timeline. It's all just going down the brown

[–] wise_pancake@lemmy.ca 21 points 22 hours ago* (last edited 22 hours ago) (2 children)

I’ve never liked the argument crypto is good for diversification.

A lot of the studies on it are from pre-Covid when crypto was on a rocket ship, so the lack of correlation is actually a false signal.

I do own a bunch of crypto, but not as a diversification tool.

[–] SoftestSapphic@lemmy.world 13 points 22 hours ago* (last edited 22 hours ago) (2 children)

All Crypto is a scam designed to make you lose money, unless you can posess enough of it to manipulate its value and use it to take money from others.

[–] wise_pancake@lemmy.ca 5 points 22 hours ago

Yeah I used to cynically buy shitcoin volatility…

I’m kind of bagholding some btc right now though.

Crypto is scammy for sure

[–] lumony@lemmings.world -2 points 20 hours ago (2 children)

Not really.

A lot of coins are scams, yes. But the concept of cryptocurrency has very valid uses in replacing the current fiat system perpetuated by governments.

[–] DarkDarkHouse@lemmy.sdf.org 9 points 18 hours ago (2 children)

Cryptocurrency is a fiat system perpetuated by scammers.

[–] WhyJiffie@sh.itjust.works 1 points 14 hours ago

most of them, yes. most of them don't have any real purpose than making a select few rich. but there's also a few (1 or 2 so far as I know) that's purpose is private payments over the internet, a purpose for which most of the others are basically useless

[–] SoftestSapphic@lemmy.world -1 points 20 hours ago (1 children)

Sunken cost falacy has you shilling for scammers.

Sell your shitcoins and free yourself, you're not getting that money back bud.

[–] lumony@lemmings.world 2 points 20 hours ago

If you look at the cryptocurrencies, they all go up and down with each other.

Really puts into perspective how far-reaching the investor class actually is.

It's funny though, because to them, all those "nerd" coins might as well be the same.

[–] Vanilla_PuddinFudge@infosec.pub 5 points 20 hours ago

Crypto, especially BTC, always nosedives with stocks.

You can make out ok if stocks are steady but inflation is rampant, but right now, there's zero hype to pump BTC with.

[–] Toneswirly@lemmy.world 5 points 16 hours ago

Dow falls 1400 points but its still at a massive 40k (nearly doubled in 5 years.) Its gonna take more than this little stunt to land Trumpy Dumps in any real hot water

[–] resetbypeer@lemmy.world 15 points 20 hours ago (1 children)

It's win win for Trump. Because him and his gangster members are now buying stock on massive discount. If stock goes up again again he can sell to his voters that it is his doing and how smart those tariffs are. Now the stock up is most likely not going to stick as an argument than the cheap buying but still. It will be used.

Time hr gets JFKed.

[–] in4apenny@lemmy.dbzer0.com 0 points 20 hours ago (1 children)

No but really was Thomas Crooks hired by Blackwater frfr?

[–] WeirdGoesPro@lemmy.dbzer0.com 3 points 18 hours ago (1 children)

I think you may have misread something. I just tried to search for that, and it seems that he was in a commercial for BlackRock, an investment firm, when he was in high school. They had a shot of a classroom that he was in, he was not a paid actor.

If he has also been hired by Blackwater, that has not been widely reported, and it seems unlikely.

[–] in4apenny@lemmy.dbzer0.com 0 points 18 hours ago

I know the backstory that's kinda the joke.

[–] magnetosphere@fedia.io 11 points 22 hours ago (1 children)

The best way to hurt major political donors is to hit them in the wallet. Trump is cutting the MAGA lifeline, for himself and every other MAGA candidate. For that, I will gladly take the pain.

[–] Manticore@lemmy.nz 7 points 22 hours ago* (last edited 22 hours ago)

When the people vote with wallets, the rich get tens of thousands more votes.

A single rich friend will compensate a boycott from thousands of impoverished people who could already barely afford their goods in an instant.

Like, still do it; our actions are a reflection of our values. But don't make it your only plan.

[–] Cocopanda@futurology.today 1 points 16 hours ago

I hate these actors they use for pictures on the floor of Wall Street. They are just paid actors. They don’t actually do anything.