Overview

• President Trump's new tariffs, enacted last week, have prompted immediate retaliatory measures from several countries, escalating global trade tensions.
• Former Federal Reserve official James Bullard likened the economic risks of the tariffs to the Smoot-Hawley Act of 1930, which deepened the Great Depression.
• Bullard emphasized that while a severe downturn is not inevitable, Wall Street's increasing recession probabilities reflect valid concerns over the policy's potential fallout.
• Trump defended the tariffs as necessary to protect U.S. workers and industries, accusing other countries of exploiting the United States for decades.
• The stock market has experienced significant declines, though the administration downplays the risks, citing recent positive job growth data.