Back to today’s briefing

Story perspectives

Powell Warns Trump's Tariffs Could Ignite Economic Crisis

4/18/2025

33 5

Left

Powell Warns Tariffs

Federal Reserve Chair Jerome Powell sounded the alarm on President Trump's tariffs, predicting they could trigger economic stagnation, rising unemployment, and inflation. The Dow plunged 700 points amid growing trade policy uncertainty. Although some tech items may escape immediate price hikes, looming tariffs on semiconductors threaten to destabilize the market and create shortages.

Right

Trump's Tariffs Impact

President Trump's tariffs are casting a shadow of uncertainty over U.S. companies, especially in the consumer technology sector. Analysts are slashing price targets for Amazon due to fears of tariff repercussions and dwindling sales. Small businesses are feeling the pinch, facing potential price hikes and limited market access. Experts urge the need for stable trade agreements to alleviate these pressures.

Center

Cramer Warns Tariffs

Jim Cramer warns that Trump's tariffs are hitting U.S. companies hard, particularly in Big Tech, where reliance on overseas manufacturing is crucial. With a staggering 145% tax on Chinese imports, giants like Nvidia and Apple are grappling with immense hurdles, compounded by the absence of government backing for their domestic manufacturing efforts.

History

Historical Context

President Trump's tariffs echo the Smoot-Hawley Tariff Act of 1930, which aimed to protect U.S. industries but led to retaliatory tariffs and a global trade collapse. This historical precedent highlights how protectionist policies can destabilize markets, triggering economic downturns and widespread unemployment.

1 of 4

Powell Warns Tariffs

Federal Reserve Chair Jerome Powell sounded the alarm on President Trump's tariffs, predicting they could trigger economic stagnation, rising unemployment, and inflation. The Dow plunged 700 points amid growing trade policy uncertainty. Although some tech items may escape immediate price hikes, looming tariffs on semiconductors threaten to destabilize the market and create shortages.

1 / 4