THIS WEEK IN FINANCE
MARCH 31 - APRIL 4
"Liberation Day" - Trump announces new tariffs
On Wednesday April 2nd, President Donald Trump formally announced his “Liberation Day” economic policy, introducing widespread tariffs on all imported goods. Speaking from the White House’s Rose Garden, President Trump emphasized the move as a big step towards revitalizing American industries, while reducing foreign dependency. The announcement marked one of the biggest shifts in U.S trade policy in decades. The policy includes a minimum flat 10% tariff on most goods. This framework was presented as a way to level the playing field after years of imbalanced trade.
The tariff rates announced are additive, meaning that they are applied to the already existing tariffs. This can be directly seen with sectors such as automobiles and steel. In some cases, imported goods can face a total tariff burden of 35% or more, which can have a significant effect on business owners and consumers. Economist nationwide have expressed the concern of straining supply chains, increasing input costs that would lead to widespread price hikes on goods. As the policy goes into effect, its broader impact on pricing and industrialization has yet to be seen.
What Does This Mean For You?
Generally, the goal of the tariff policy is to revitalize industrialization and manufacturing within the United States, creating additional jobs and encouraging corporations to shift production back on the United States. However, in the short term, the United States relies heavily on imported goods, meaning that we may not have the necessary manufacturing infrastructure to offset the immediate impact. As a result, we may see higher prices within a few weeks. During this time it may be best to cut back on consumer spending and prepare for the road ahead as the nation prepares to rebuild its industrial foundation.
U.S. Department of Health and Human Services Layoffs
Layoff notices have been issued this week as part of a greater workforce reduction that has been linked to the expiration of pandemic related funding. Significant budget cuts were spread across the board including programs related to emergency preparedness initiatives, outreach and testing infrastructure that had been expanded during the COVID-19 pandemic. Many of these programs were funded through federal grants and emergency allocation. Centers for Disease Control and Prevention (CDC), state health departments, and local public health offices have begun issuing layoff notices.
Public Health experts warn that the timing of these layoffs can have significant effects on local communities, as many communities continue to grapple with local health challenges, mental health concerns, and chronic illness management. The reduction in staffing and resources may directly effect low-income and rural areas of the country. As a result, some regions may face the close of emergency health facilities and clinics, particularly those receiving state funding.
What Does This Mean For You?
The effects of the layoffs may not be immediately visible, but the effects can be come more noticeable over time. There is a possibility of reduced availability of of public health services, longer waits at local clinics, and closures of community health centers. Programs related to mental health and preventative care may be harder to access as funding begins to decrease. It is best to stay informed about changes with your local health department, and to explore what resources may be available.
Wall Street Reacts to Uncertainty, Awaits Employment Report
In the lead of up the March employment report, the U.S. markets have experienced increased volatility, influenced by President Trump’s tariff policies. On April 3, 2025, the Dow Jones Industrial Average fell 4%, the S&P 500 dropped 4.8%, and the Nasdaq Composite plummeted 6%, marking the worst single-day performance since 2020. As investors look ahead to the upcoming employment report, scheduled for release today (April 4th, 2025) at 8:30 AM Eastern Standard Time. Analysts forecast a modest increase of 128,000 jobs for March, down from 151,000 in February.
The unemployment rate is expected to hold steady at 4.1%. Any deviation from this figure may result in a stronger reaction during opening bell, especially in light with the recent tariff announcements. Economist predict that job growth will begin to show signs of slowing down. During Q1 of 2025, we have seen an increase in hiring across several sectors, particularly in retail, logistics, and manufacturing—industries that are closely tied to global trade and supply chain dynamics. In the coming months, due to rising trade tensions, we may see declines in these very sectors.
What Does This Mean For You?
If you’re currently active in the markets, it may be wise to sit on the sideline for now as the market begins to find its footing. This weeks market activity is a good reminder on how quickly sentiment can shift. If you’re not actively investing but are watching the economy closely, pay attention to the upcoming employment report. Strong job numbers could stabilize markets and begin to make up for loses on April 3rd. There is a possibility that we will not see the market stabilize until the afternoon, or early next week. If volatility continues, we could see investors waiting for Monday’s market open before making any decisive moves. As a reminder, do your own due diligence and avoid making decisions based solely on short-term market movements. Always consider your financial goals, risk tolerance, and investment timeline before taking action.
Notable Events
- Senator Cory Booker delivered a record-breaking 25-hour speech on the Senate floor to protest President Trump’s policies, concluding on April 1st, 2025.
- President Donald Trump announced his new aggressive “Liberation Day” tariff plan on April 2nd, 2025.
- Global markets reacted sharply to the tariff announcement, with major indices posting their worst single-day losses since 2020 on April 3rd, 2025.
- March’s Employment Report is scheduled to be released by the U.S. Bureau of Labor Statistics today (April 4th, 2025.)
Looking Into Next Week
Next week, attention will be shifting towards the market’s reaction of this weeks employment data and policies. Volatility may continue forward, however, next week could provide a window of stability as investors reassess their positions. Next week will also mark the unofficial start of earnings season, with major financial institutions like JPMorgan Chase, Wells Fargo, and Citigroup scheduled to report. Additionally, investors should be prepared for potential developments on the global stage, as several U.S. trade partners are expected to respond in a retaliatory manner with tariffs towards American exports.