Overview

• The S&P 500 and Nasdaq are on track for their worst quarter since 2022, with year-to-date losses exceeding 5% and 11%, respectively, as markets react to impending tariffs.
• Trump's tariffs, averaging 15-20% and including a 25% duty on auto imports, are projected to generate $100 billion in revenue but raise inflation to 3.5% by year-end, according to Goldman Sachs.
• Global markets, including Japan, South Korea, and Germany, have seen significant declines, with Japan's Nikkei 225 entering correction territory after a 4% drop.
• Economists warn of potential stagflation and a 35% chance of a U.S. recession, citing weakened consumer confidence and higher costs for businesses and consumers.
• Automakers like Volkswagen and Toyota face major disruptions, with stock losses of 3-4%, as the tariffs threaten to increase vehicle prices by $5,000 to $10,000 in the U.S.