For once in his life, Donald Trump underpromised and over-delivered.
The president announced a 10% duty on all imports on Wednesday, along with a raft of reciprocal tariffs on U.S. trading partners. An extensive graphic released by the White House showed how far Trump was willing to take his tit-for-tat trade war, including a shocking levy of 10% on all imports from the Heard and McDonald Islands.
If you haven't heard of this powerhouse of global trade, you aren't alone. Few have outside of Antarctic researchers and seals. These extremely remote islands about 1,000 miles north of Antarctica consist mostly of barren tundra. They're also entirely uninhabited.
The news that we were starting a trade war with penguins spread quickly after Trump's announcement. Barring a mass sell-off of stock from Feathers McGraw, its inclusion in the tariff regime is unlikely to contribute to the ongoing market shock.
U.S. stock futures crumbled following the news of Trump's widespread tariffs. Dow futures fell by nearly 1,000 points while NASDAQ and S&P futures fell by 3 to 4%. American companies' stock values rapidly tumbled after the announcement, with large retail importers seeing significant losses. Dollar Tree and Walmart stocks fell by 11% and 6%, respectively in after-hours trading.
Trump has promised that the short-term price increases and stock market pain will put the country on the path toward an era of revitalized American manufacturing.
"More production at home will mean stronger competition and lower prices for consumers," he said. "We’re gonna come back very strongly."
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