Global financial markets faced significant turmoil on Thursday following President Donald Trump’s announcement of a new and intense round of tariffs, hitting the U.S. stock market particularly hard. This decision has sparked widespread fear and a sell-off in markets worldwide due to concerns over potential inflation and slowed economic growth initiated by the tariffs. Stock prices dropped across various sectors, including crude oil and major technology equities.
Chile’s Finance Minister, Mario Marcel, criticized Trump’s tariffs as “unjustified,” suggesting they could deliver a shock to the global economy. Although the 10% tariffs on Chile from the U.S. do not directly affect its key exports, such as lumber and copper, they could impact the nation’s agricultural competitiveness. The U.S. is Chile’s second-largest trading partner, following China.
President Trump, meanwhile, was spotted at his Trump Doral golf resort, scheduled to attend a dinner with LIV tour golfers. The LIV tournament begins on Friday, and while some politicians were seen participating in a pro-am event, Trump is expected to play golf at one of his properties over the weekend.
In political maneuvers, Trump denied that activist Laura Loomer had any role in recent firings at the National Security Council, despite having recommended candidates during a meeting. Trump admitted to removing certain staff due to job performance concerns or perceived disloyalty. In another shift, rumors suggest that Elon Musk, a notable advisor to Trump, may be stepping down soon due to commitments with his companies including Tesla and SpaceX.
Additionally, a federal court will temporarily halt Trump’s administration from cutting billions in health funding, supporting public health initiatives including mental health and COVID-19 projects. This decision came after a coalition of attorneys general filed a lawsuit against the $11 billion cuts proposed by Trump’s administration.
On the defense front, Senator Bernie Sanders led an unsuccessful bid to block a large bomb sale to Israel, while a separate inquiry has been launched into the use of the Signal app by Defense Secretary Pete Hegseth for military communication. Simultaneously, discussions on China reveal David Perdue, Trump’s pick for U.S. ambassador, warning against the economic impact of tariffs if U.S. consumers turn away from Chinese goods.
The tariffs have triggered mixed reactions from political leaders across various nations. Italian Premier Giorgia Meloni stated that while Trump’s tariffs on European goods are a negative step, they are not catastrophic. Canadian Prime Minister Mark Carney announced retaliatory measures, matching U.S. auto tariffs with a tax on vehicles imported from the United States. Senate representatives, including Chuck Schumer, criticized Trump’s tariff strategy, while calls for more significant congressional control over tariff imposition have emerged.
Given this economic landscape, bipartisan lawmakers in the U.S. seek more insight into Trump’s intentions, particularly with a nation grappling with significant tariff-driven economic challenges. Prominent voices in Europe and Asia have joined the discussion, including Germany’s Chancellor Olaf Scholz and Japan’s Prime Minister Shigeru Ishiba, expressing deep concerns over the potential fallout from these tariffs and stressing the need for negotiation to maintain global economic stability. As global markets face a reset, industries and foreign economies are devising strategies to tackle this renewed protectionism.