Trump's Tariffs Trigger Market Decline; S&P 500 Target Cut
Key Takeaways
- Trump announced 25% tariffs on foreign-made vehicles, effective April 2nd.
- Nasdaq sank over 2% following Trump's tariff announcement.
- GM's stock fell approximately 6%, Stellantis' stock dropped over 1% after tariff announcement.
- A Wall Street bank reduced its year-end price target for the S&P 500.
- Oil executives criticize Trump's tariffs, citing uncertainty and rising costs.
Policy Updates
Trump announces 25% tariffs; Nasdaq, S&P 500 decline
On March 26 and 27, 2025, President Trump announced 25% tariffs on foreign-made vehicles, impacting automakers like GM and Stellantis. The Nasdaq and S&P 500 experienced declines, with the Nasdaq sinking over 2%, as the market reacted to the impending tariffs, which are set to take effect on April 2nd; GM's stock fell by approximately 6%, while Stellantis' stock dropped by over 1%.
Oil executives criticize Trump's tariffs, 'drill, baby, drill'
On March 27, 2025, oil executives, in response to a Federal Reserve Bank of Dallas survey, criticized President Trump’s policies, including steel tariffs and the “drill, baby, drill” message. They stated these policies are creating uncertainty, raising costs, and making it difficult to plan for future projects, impacting investment in energy markets; one executive noted the threat of $50 oil prices has caused their firm to reduce its 2025 and 2026 capital expenditures.