- President Donald Trump threatened the EU with 200% tariffs. The move comes after the EU responded to U.S. tariffs on steel and aluminum.
- A new poll finds the majority of Americans believe Trump’s moves on the economy are “too erratic.”
- The S&P 500 dipped into correction territory Thursday as some of America’s most prominent CEOs said uncertainty is bad for business.
Full Story
President Donald Trump threatened a 200% tariff on specific products from the European Union on Thursday, March 13. The president’s latest salvo in his trade regime hit as policy uncertainty weighs on markets.
Trump’s 200% threat would apply to alcohol imports coming from the EU, according to a Truth Social post. He said the EU must remove its retaliatory tariffs on the U.S.
What’s the latest on the tariff back-and-forth?
Trump officially implemented a 25% tariff on steel and aluminum on Wednesday, March 12. The EU responded by issuing duties on American items like motorcycles and whiskey.
“The European Union, one of the most hostile and abusive taxing and tariffing authorities in the World, which was formed for the sole purpose of taking advantage of the United States, has just put a nasty 50% Tariff on Whisky,” Trump wrote on Truth Social.
“If this Tariff is not removed immediately, the U.S. will shortly place a 200% Tariff on all WINES, CHAMPAGNES, & ALCOHOLIC PRODUCTS COMING OUT OF FRANCE AND OTHER E.U. REPRESENTED COUNTRIES,” he added in the post.
“The Entire World is RIPPING US OFF,” the president said in a separate post later Thursday.
Do Americans think Trump’s moves are “too erratic?”
This week, a new poll found the majority of Americans believe Trump’s economic policy moves have been “too erratic.”
A Reuters/Ipsos poll of 1,422 Americans taken this week found 57% believe “Trump’s moves to shake up the economy” are “too erratic.” Meanwhile, 60% of Republicans disagreed with the statement, while only 29% agreed.
Six in 10 Americans said they think the president should focus on inflation over anything else. Seven in 10 said they believe higher tariffs will lead to higher prices.
Inflation cooled more than expected during President Trump’s first full month in office. In February, consumer prices rose 0.2% for the month after rising 0.5% in January, according to the latest data from the Bureau of Labor Statistics.
A majority of Republicans support Trump’s tariff policies
More than half of Republicans surveyed agreed higher tariffs are a good idea even if prices increase and said that workers come out ahead when the U.S. charges tariffs. They disagreed that tariffs cause more harm than good.
When polling all adults, only around one-third agreed that higher tariffs are a good idea in the face of rising prices and that workers come out ahead. More than half said tariffs will do more harm than good.
The Reuters/Ipsos poll found 39% of voters approve of Trump’s handling of the economy. Trump’s numbers are still higher than what his predecessor President Joe Biden scored for the majority of his term in the White House. However, in Trump’s first term, he never scored below 44% in this category.
Some CEOs say uncertainty is bad for business, but others say wait and see
The stock market is sitting at a six-month low. After a post-election rally on Trump’s victory, stock market indexes have given up those gains. On Thursday, the S&P 500 dipped into correction territory as the major indexes slid more than a full percent by Thursday afternoon.
Some of the most prominent CEOs in the world are highlighting the uncertainty created by these tariffs. JPMorgan Chase CEO Jamie Dimon notably changed his tune on trade duties.
“I don’t think the average American consumer who wakes up in the morning and goes to work changes what they’re going to do because they read about tariffs,” Dimon told Semafor at a summit on retirement hosted by BlackRock and the Bipartisan Policy Center. “But I do think companies might. Uncertainty is not a good thing.”
In January, Dimon claimed tariffs were good for national security and that critics need to “get over it” if they are a little inflationary.
“The collective impact in the short run is that people are pausing, they’re pulling back,” BlackRock CEO Larry Fink told CNN at the same event. ”Talking to CEOs throughout the economy, I hear that the economy is weakening as we speak.”
Meanwhile, the CEO of Goldman Sachs is taking a more patient approach on Trump’s policy.
“I think the business community understands what the president is trying to do with tariffs,” David Solomon said during an appearance on Fox Business’ “Mornings with Maria.” “Now, the business community is always going to want lower tariffs everywhere, everywhere in the world. At the moment, there is some uncertainty. The market is digesting that, but we’re going to have to watch and see how this all plays out.”
