Trump's Tariffs, Tesla's Tumble, and Tech's Turmoil: This Week in Politics

Ladies and gentlemen, buckle up! This week has been a rollercoaster ride of political and economic drama that's left investors reeling and the market in chaos. From Trump's tariff tantrums to Tesla's stock slide, and from cannabis policy confusion to the CHIPS Act shakeup, there's no shortage of action. Let's dive in!

TRUMP'S TARIFF TANTRUM



First things first, let's talk about the elephant in the room: Trump's tariffs. The man has thrown a wrench into the global supply chain with his so-called "reciprocal tariffs." He's aiming to curb the U.S.'s reliance on foreign goods, but all he's done is throw the market into chaos. Wall Street is in shambles, with a $5 trillion market value wiped out in just two days. That's the worst performance for the S&P 500 since the pandemic shock of 2020. And who's taking the biggest hit? Tech stocks, thanks to their dependence on Chinese minerals and labor. Tesla, in particular, is in rough shape, with its stock plummeting almost immediately after China announced its 34% tariffs in retaliation.

TESLA'S TUMBLE



Tesla's stock has fallen by nearly 44% since Trump took office. And that's before you even mention Tesla's dismal quarterly sales results, which came in lower than even the worst estimates at a three-year low. Analysts are now predicting a second straight year of sales decline for Tesla, which is bad news for Tesla's long-term outlook. Musk's personal fortune, which is tightly connected to Tesla, likewise took a plunge. Thanks to Trump's tariffs, his massive hoard of riches shed some $11 billion, for a 2.5% loss. Forbes had previously reported in March that Musk's net worth was down by $104 billion since Trump took office on January 20th, a number that these tariffs might soon look like chump change as countries cancel Starlink contracts and the European Union prepares its own retaliatory measures.

CANNABIS CONFUSION

But it's not all doom and gloom. Let's talk about cannabis. Despite receiving praise from a pro-cannabis PAC during his campaign, President Trump seems to be in no rush to make significant changes to cannabis policy. A White House official stated that “no action is being considered at this time” regarding marijuana policy. So, if you're holding out for a green rush, you might be waiting a while.

CHIPS ACT SHAKEDOWN

And finally, let's talk about the CHIPS Act. Trump has set up a new entity within the Commerce Department to manage the CHIPS and Science Act, 2022. The United States Investment Accelerator will now oversee the CHIPS Act program. But will this shakeup help or hinder the tech industry? Only time will tell.

So, what's the bottom line? This week has been a wild ride, and the market is in for a bumpy road ahead. But remember, every crisis is an opportunity. Stay tuned for more updates, and keep your eyes on the prize. The market may be volatile, but there's always money to be made for those who know where to look.