LAST WEEK IN FINANCE
APRIL 7 - APRIL 11
Trump Pauses Most Tariffs, But Targets China
On Wednesday, April 9th, President Donald Trump announced a 90-day pause on most tariffs previously announced. This suspension is meant to provide a window of opportunity for ongoing relations and negotiations with trade partners concerned about the rapid escalation of protectionist measures. However, the pause does not apply universally—tariffs on Chinese imports were raised to 145%, and existing duties on automotive imports remain in place.
As the trade war now appears to change gears with a more focused aim on China’s exports, the U.S. is signaling a shift from broad tariff application toward a more targeted economic strategy. This approach reflects growing tensions between the two nations and a willingness by the Trump administration to isolate China as the central issue in its trade agenda.
What Does This Mean For You?
With most tariffs being hit with a pause, it appears that we have avoided a recession (for now) in the short term. The sharp rebound in equities suggest that there is some confidence in investors (for now). While uncertainty remains, particularly surrounding U.S.–China relations, it also appears that Taiwan, India, and Vietnam are willing to re willing to strengthen trade ties with the United States. Early reports indicate these nations may look to expand exports and fill the gaps left by reduced Chinese trade activity. With investments rolling into these countries, we may be looking into a healthier trading relationship in contrast what has previously existed with China. However, the previous sentiment that manufacturing will be returning to the United States still remains unclear.
Federal Funding Crisis - Cuts Continue As Planned
The U.S. Treasury Department is reportedly planning to cut 50% of IRS enforcement personnel, as well as up to 20% of staffing throughout the Treasury’s various components. These cuts, if enacted, would create additional challenges for collection efforts—particularly concerning when considering that $1.4 billion in unpaid taxes was recovered from high-income individuals through enforcement actions in the past year alone. A reduced enforcement workforce could result in fewer audits, delayed investigations, and missed opportunities to recoup revenue at a time when every federal dollar counts.
The department is offering a deferred resignation process, allowing permanent and long-term employees to receive pay through the end of the year while on administrative leave. This option is intended to ease the transition for affected staff, but also highlights the scope of the cuts and the government’s attempt to soften the impact of a rapidly contracting federal workforce. The FDA continues downsizing with the aim of a 20% reduction in its workforce. The agency will also scale back its remote-hybrid work model commonly known as telework—to ensure that remaining staff are positioned to support core operations.
What Does This Mean For You?
If you are currently a federal employee, you may want to begin preparing for potential changes to your role, location, or job security. With agency reorganizations underway and staffing reductions continuing across departments, job security may be at risk if you are a federal employee. If you are not an employee, these cuts may still affect you depending on your current needs at any given time. For example, there may be delays during tax season next year. It would be best to get ahead of the curve by planning ahead, and in this case – filing early.
Relief Rally Fades, Doubt Returns
Despite a sharp rally Wednesday afternoon following President Trump’s pause announcement, markets struggled to maintain momentum. On Thursday, April 10th, the optimism quickly faded as investors reassessed the potential macro effects. The Dow Jones and Nasdaq both dipped, with losses concentrated in tech and consumer discretionary sectors. While the central bank has held rates steady, officials have cautioned that persistent core inflation, in addition to trade policy volatility.
On the other side of the globe, major Asian indexes have fallen up to 5% at open. Japan’s Nikkei 225 falls the steepest prior to opening bell. Previously, the index jumped 9% following the news of the tariff pause, but quickly lost steam overnight. These early market moves could serve as an indicator for how U.S. markets may open and perform today. As volatility continues to ripple across global markets, eyes will be on Wall Street to see whether it follows the same uncertain path—or finds footing to close out the week.
What Does This Mean For You?
While this isn’t financial advice, the current level of market volatility should be a signal to proceed with caution—especially for those in short-term swing positions. If you’re holding trades that are highly sensitive to day-to-day headlines or momentum shifts, it may be wise to consider locking in profits or reducing exposure as uncertainty continues to drive rapid market reversals.
Notable Events
- President Trump announced a 90-day pause on most tariffs, excluding key sectors and trade partners, on April 9th, 2025.
- Tariffs on Chinese exports were raised to 145%, further escalating trade tensions on April 9th, 2025.
- Major banking institutions, including JPMorgan Chase, Wells Fargo, and Citigroup, are scheduled to announce their first-quarter earnings today, Friday, April 11th, 2025.
- The Producer Price Index (PPI) for March is set to be released today, Friday, April 11th, 2025, providing insights into inflationary pressures at the producer level.
Looking Into Next Week
As we look ahead to next week, earnings reports from Goldman Sachs, Bank of America, and Citigroup will take center stage. These results will offer a deeper look into how major financial institutions are navigating rising interest rates. With the Fed still signaling caution, next week could set the tone for how the second quarter unfolds. Whether the market continues to stabilize—or is met with more turbulence—will likely hinge on the data and the tone set by corporate and central bank leaders alike.