Trump Acknowledges Tariff Pain, Markets Plunge 3.46%

U.S. President Donald Trump acknowledged the challenges posed by his tariff policy changes during a Cabinet meeting, stating that while the transition is difficult, the end result will be positive. He defended the shift in trade strategy as a necessary correction, despite the short-term pain it may cause. Trump also hinted at the possibility of extending the 90-day pause on his “reciprocal” tariffs, stating that if favorable deals with U.S. trading partners cannot be secured, tariffs will revert to higher rates after the pause.

Trump's remarks came as economic anxiety rises among U.S. monetary policymakers. Chicago Federal Reserve Bank President Austan Goolsbee expressed concern about a return to economic conditions seen during the COVID-19 pandemic, citing a loss of confidence and growing anxiety within the district. Goolsbee warned that setbacks in sentiment could create broader risks for the economy.

Trump's trade approach has been influenced by market volatility and a sharp rise in Treasury yields. The had previously accepted the risk of a shallow recession in order to avoid a deeper depression. However, amid collapsing bond markets and advice from National Economic Council Director Kevin Hassett, Trump reversed course on some tariffs. The decision helped spur a market rebound on April 9, with the S&P 500 posting its strongest single-day gain since 2008. Treasury Secretary Scott Bessent reportedly played a significant role in coordinating the policy shift.

The major U.S. stock market indices closed lower today, with the S&P 500 down 3.46%, the Nasdaq falling 4.31%, and the Dow decreasing by 2.50%. Bitcoin (BTC) gave up some of its gains from April 9 and is trading at $79,800. Overall, it was a challenging day for investors across the board.