American actions dropped again Thursday after a historic rally after the shock retirement from Donald Trump on Wednesday on the heavy prices he had just imposed on dozens of countries.
The falls came while the president blamed the “transitional problems” for the reaction of the market and that the sale deepened after a clarification of the White House noted that the total prices on China had been increased by 145% since Trump had taken office.
Speaking at the White House, Trump said: “We think we are in very good shape. We think we are doing very well. Again, there will be a transition cost, transitional problems, but in the end, it will be a nice thing.”
On CNN, the former secretary in the United States of the Treasury, Janet Yellen, described Trump’s economic policies the “worst self-inflicted injury” that an administration has ever imposed on a “economy that works well”.
The sale occurs while the Democrats continue to react with anger during the sudden retirement which rocked the markets, while the Republicans congratulated “the art of agreement” of Trump in action, referring to the book of Trump in 1987.
At the end of Thursday, the DOW dropped by 2.5% after hovering on Wednesday afternoon. The Nasdaq Composite fell by more than 4%, after having displayed its greatest gain in more than two decades on Wednesday, and the S&P 500 down 3.4%.
The market seems to be in a state of fatigue after a week of roller coaster. Actions did not even respond to the news on Thursday morning that the European Union announced that it would suspend 25% of reprisals against American imports and that new data has shown that inflation in the United States has been cooled at 2.4% in March – both would generally be optimistic at Wall Street.
Trump declared Wednesday in a brutal announcement that he would implement a 90 -day break on his price plan, and that the goods entering the United States of most countries would now face a rate of 10% until July, with the exception of Chinese exports, which, according to him, would face rates totaling 145% to count immediately – 125% in the “reciprocal” rates. For the alleged role of China in the fentanyl.
The Republican legislators welcomed the decision to suspend the prices, with the president of the chamber, Mike Johnson, declaring on social networks: “Here is” the art of the agreement “. President Trump has created a leverage, has brought many countries to the table and will deliver for American workers, American manufacturers and the future of America! »»
Before the break of the break, a small but growing number of republican legislators and Trump supporters in the business world expressed their concerns concerning the risks of the president’s tariff policy.
Wednesday afternoon, many Congratulate Trump for withdrawal as part of an alleged strategy.
Bill Ackman, a Millionaire and Supporter High Sadio and Supporter Manager of Trump who advocated for Trump to suspend his trade war this weekend, reacted to the announcement saying that “it was brilliantly executed by @realdonaldtrump. Manuel, Art of Agreement ”.
The advantage of Trump’s approach, “said Ackman:” We are now understanding who are our favorite business partners, and who are the problems. China has been a bad actor. Our counterparts also have a taste of what life is if it does not retain its trade barriers. This is the perfect configuration for trade negotiations over the next 90 days. ”
But some industry leaders have criticized the back and forth decisions of the administration.
On Thursday, Amazon CEO Andy Jassy said that the company was still waiting to see the impact of prices, but warned that third -party sellers could “transmit this cost” to consumers.
“The effective rate rate is in fact higher with the break that it was announced on April 2, due to prices on China,” wrote Diane Swonk, chief economist of the KPMG professional service company, on social networks. “There will be a certain diversion in the connector countries. However, the effective rate rate now reaches 30.5% during the break. It’s worse than our worst scenarios. “
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While the Republicans and the Officials of the White House welcomed Trump’s decisions, democratic legislators such as Senator Chuck Schumer have pushed back. Schumer told his supporters that “this chaos is a whole game to Donald Trump”.
“He thinks he plays in red and green light with the economy,” said Schumer. “But it’s very real for American families.”
Some Democrats have made accusations of possible market manipulation.
“These constant gyps in politics offer dangerous opportunities for the offense of initiate,” said Senator Adam Schiff. “Who in the administration was aware of Trump’s last prices in advance in advance? Did anyone buy or sold actions and took advantage of the public costs? I write to the White House-the public has the right to know.”
New York Representative Alexandria Ocasio-Cortez has echoed similar concerns, urging any member of the congress who bought shares in the past two days to reveal it.
“I heard interesting chatter on the ground,” she said. “The deadline for disclosure is May 15. We are about to learn a few things. It is time to prohibit the negotiation of initiates in the congress. ”
The whip of the Democratic Chamber, Katherine Clark, wrote: “Two hours before announcing her price break, Trump said to his paid paid social subscribers that it was” the ideal time to buy “on the stock market. Corruption is the name of their game.”
The representative of Nevada, Steven Horsford, questioned the representative of American trade, Jamieson Greer, asking the representative during a committee hearing if the rise was the manipulation of the market.
“How is it not market manipulation?” Horsford asked which Greer replied: “No.”
“If it was always a plan, how is it not the manipulation of the market?” Horsford asked again.
“Prices are a tool, they can be used in the appropriate way to protect jobs and small American businesses, but that’s not what it does,” said Horsford. “So, if it is not market manipulation, what is it?” Who benefits? Which billionaire has become richer? ”
