CNBC host Jon Fortt called Trump’s “Liberation Day” tariffs “worse than worst-case scenario” as he watched their plummeting effect on the market happen in real-time.
While speaking with Morgan Brennan in the aftermath of President Trump’s tariff signing Wednesday, Fortt voiced the concern of many in the market as they braced for the sweeping tariffs to go into effect at midnight.
“And the market reaction after hours — I’ve never seen anything like it,” Fortt said. “This — I think, fair to say, is worse than the worst-case scenario of the tariffs that many in the market expected the president to impose. You laid out a number of the percentages there, and there’s some question of how the administration calculated the percentages that they’re responding to in each of these cases. Are they adding in value-added taxes? He talked about, you know, non-tariff barriers as well. So I think while many were hoping that this would eliminate uncertainty, there’s going to be more uncertainty in the market.”
Brennan walked through some of what Trump called “reciprocal tariffs” – a sweeping order of at least 10% or higher for the 60 countries the president deemed the worst offenders.
“So China, for example, including tariffs, currency manipulation and trade barriers, charging a ‘discounted 34% tariff,’ layer that on top of a 20% existing tariff, you get to 54% EU 20%, Vietnam 46%, Taiwan 32%,” Brennan said. “We can go down the list here. Fentanyl tariffs on Canada and Mexico staying in place with the exception of USMCA-compliant goods. And all of this going into effect at midnight tonight.”
Stock futures plummeted after the order was signed. The effects were immediately felt in the market with Dow Jones down 2.1%, S&P 500 down 3.4% and NASDAQ down 4.3%.
“We will charge them approximately half of what they are and have been charging us,” Trump said in a press conference from the White House Rose Garden. “So, the tariffs will be not a full reciprocal.”
You can watch the CNBC full video in the clip above.
