Treasury secretary issues blunt warning amid tariffs
Scott Bessent sends a stern message following "Liberation Day."
Investors have had a rough year. Stocks came into 2024 riding high after back-to-back years of S&P 500 returns above 20%. It's been a much different story in 2025.
The stock market's valuation was arguably stretched too far by last year's gains, and pricing them to perfection set the stage for a reckoning amid growing recession worries. Sticky inflation and recent job losses have raised the risk of stagflation, and the latest news out of the White House on tariffs has done little to ease investor concerns.
The so-called "Liberation Day" tariff announcement on April 2 included widespread taxes on global imports ranging from 10% up to 40% or more for many trading partners, particularly in Asia. An additional 34% tariff on China lifted taxes on imports from there to 54%, potentially sparking price increases on everything from apparel to electronics.
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The tariff news wasn't unexpected, given they were a cornerstone of President Trump's election campaign. Their size, however, was unsettling, derailing hopes that pre-announcement negotiations would tame them.
Following the announcement, the S&P 500 tumbled 4%, sending shock waves. Global markets also staggered, as the NIKKEI 225 Index slumped 5%.
