Crypto News: Trump's tariff blitz

Good morning. Donald Trump's tariffs unleash market chaos. Elon Musk's team is halting Treasury payments to US contactors. And Beyoncé and Kendrick Lamar win big at the Grammys. Listen to the day's top stories.

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5,971.25

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1,316.25

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Donald Trump sparked a global market selloff after making good on his threat to impose tariffs on Canada, Mexico and China. The levies are set to take effect tomorrow barring a last-minute deal in Trump's calls with leaders of Canada and Mexico today. And there's more to come: The European Union is next on his tariff list. The EU has vowed to "respond firmly" if that does happen.

Trump's existing targets are also preparing their defenses. Canada mounted a crisis response that drew parallels with the Covid pandemic, while Mexican President Claudia Sheinbaum said she'll come up with a "Plan B" to protect the country. China's reaction was more muted, vowing "corresponding countermeasures" without elaborating. Read our explainer on what Trump aims to achieve with his tariff plans.

The levies on Canada and Mexico are set to squeeze American consumers, with higher prices for vegetables, fuel, cars and booze. Goldman Sachs warned US stocks may drop 5% in the near term as the tariffs crimp earnings forecasts. And as for Canada's economy, there's a genuine risk of a recession.

Trump Aims a Wrecking Ball at Economy of the Americas

Read the Story

Amid the unprecedented action (and chaos), Elon Musk weighed in with cost cuts. His DOGE team is halting some Treasury payments to federal contractors. He's also in the process of shutting down USAID after his staff were denied access to its systems. Listen to our Elon, Inc. podcast.

Panama promised free passage for US warships through the Panama Canal and said it'll withdraw from China's signature Belt and Road lending program after Secretary of State Marco Rubio blasted Jose Raul Mulino's government. Trump also took aim at South Africa, announcing that the US will stop sending aid there over its land expropriation policies.

Deep Dive: Sticking With Bearish Views

Photographer: Gavin John/Bloomberg

A lot has happened since Wall Street's most famous market pessimist left JPMorgan last year. But his gloomy outlook for US stocks hasn't changed—in fact, he's even more downbeat.

Marko Kolanovic expects the S&P 500 to plunge 1,000 points or more, citing a bevy of risks from high concentration to geopolitical turmoil.
The gauge may go down "much lower into 4,000—I think there's some probability of that," he told Bloomberg's Odd Lots podcast.
Kolanovic, who still has a large investor following, hasn't announced plans for his next endeavor. But when asked if he has plans to join TikTok and make market forecasts, he replied "never."

Opinion

Trump's tariff policy is dumb, John Authers writes. Starting with Canada and Mexico maximizes the risk to US jobs and prices. It won't stem fentanyl, may drive more migrants from Mexico, and will have little impact on reducing the trade deficit.

More Opinions

Karishma Vaswani

Trump's Bullying Trade Tactics Will Backfire

Jonathan Levin

Three Unsettling Lessons From Trump's Tariff Drama

Hal Brands

Every President Has a Foreign Policy. Trump Has Five.

Before You Go

Beyoncé accepts the Best Country Album award for Cowboy Carter from Taylor Swift. Photographer: Amy Sussman/Getty Images

Grammy winners. Beyoncé won her first album of the year—and 35th Grammy in total—after breaking into country music with Cowboy Carter. Kendrick Lamar won best single for Not Like Us, while Jimmy Carter got a posthumous award for narrating Last Sundays in Plains. Chappell Roan was named best new artist and performed Pink Pony Club, sitting on a giant pink pony (obvs) before joining a group of dancers dressed as rodeo clowns.