Apple News Today: "What Was the Market Mayhem All For?"

Release Date: April 11, 2025
Host: Shemitha Basu
Guest: Sean Donnan, Senior Economics Writer at Bloomberg News

Trump Administration's Tariff Policy and Market Turmoil

In this episode, Shemitha Basu delves deep into the tumultuous week surrounding President Trump's aggressive tariff policies, a central theme that has significantly impacted global markets and economic stability.

Escalation of Tariffs: President Trump’s administration intensified tariffs, notably imposing a staggering 145% tariff on Chinese goods. Despite some reversals, the overall tariff rate in the U.S. reached its highest since 1909, as highlighted by Sean Donnan (02:00). This dramatic increase has led to a noticeable slowdown in global trade, with companies canceling shipments and orders from Chinese suppliers.

Market Reaction: The financial markets experienced unprecedented volatility, with $19-$20 trillion in global financial market value wiped out within a week (02:35). Donnan emphasizes the severity by comparing it to the size of the U.S. economy, stating, “That’s wiping out two-thirds of the US Economy from global financial markets” (02:45). The sudden rise in U.S. Treasury yields further signaled alarm, contributing to the decision to scale back tariffs.

Administration’s Strategy or Concession? A pivotal question discussed is whether the administration’s actions were a calculated strategy or a reactive concession. Donnan suggests that President Trump might have orchestrated the tariff escalation to gain leverage, noting, “Donald Trump outsmarted the world” (03:48). However, the unpredictable bond market responses indicated potential overreach, leading to partial tariff rollbacks.

Potential Concessions and Long-Term Impact: Trump’s administration claims to have engaged dozens of countries in negotiations, aiming for significant concessions in trade deals. Donnan remains skeptical, citing Trump’s history of proclaiming victories that often fall short upon closer inspection (06:35). The long-term implications include a more closed U.S. economy, increased production costs due to higher tariffs on materials like steel, and demographic challenges such as a shrinking workforce exacerbated by restrictive immigration policies.

Vision for American Manufacturing: Basu probes the administration's ultimate goal of revitalizing American manufacturing. Donnan assesses the realism of this vision, acknowledging the legitimate concerns over job losses due to globalization but highlighting numerous barriers. Issues such as higher domestic production costs, a declining workforce, and regulatory hurdles present significant challenges. He concludes, “We’re not going to know for two, three years how successful Donald Trump’s strategy is” (07:45).

Dual Narratives: Victory vs. Capitulation: As the episode wraps up, Basu and Donnan reflect on the contrasting narratives surrounding the tariff policy. While the administration celebrates the week’s actions as strategic victories, critics view them as unsustainable concessions. Donnan advises listeners to consider the broader trajectory towards protectionism, stating, “The real story in the weeks and months, possibly even years to come is going to be how the United States manages that shock” (10:15).

Supreme Court Ruling on Wrongful Deportation

The episode also covers a significant Supreme Court decision mandating the Trump administration to facilitate the return of Kilmar Abrego Garcia, a Maryland man mistakenly deported to El Salvador (11:13). The court paused the lower court’s order to allow further review, emphasizing the necessity to handle his case as if he had not been deported. The administration’s inability to provide evidence of Abrego Garcia’s alleged gang affiliation was highlighted, raising questions about immigration policies and executive power.

Aviation Incidents and Public Safety Concerns

Two aviation accidents shook public confidence on the same day:

1. New York Helicopter Crash: A helicopter carrying six individuals, including children, tragically crashed into the Hudson River, resulting in no survivors (11:30).
2. Reagan National Airport Collision: An American Airlines plane carrying House members from New York and New Jersey was struck by another aircraft on the ground, rekindling fears following a deadly collision in January that killed 67 people.

These incidents underscore ongoing safety challenges within U.S. aviation, especially at Reagan National Airport, which has faced heightened scrutiny since the January accident.

Impact of U.S. Immigration Policies on International Artists at Coachella

As the Coachella music festival commences, concerns arise among foreign artists regarding U.S. immigration policies. Increased visa costs, longer processing times, and incidents of denied entries have made some artists hesitant to perform in the U.S. The LA Times reports that these barriers, coupled with political tensions, are causing international acts to reconsider their participation, potentially affecting the festival’s diversity and international appeal.

Additional Insights: Democratic Response to Immigration Agenda

In a conversation with New Yorker staff writer Jonathan Blitzer, Sean Donnan comments on the Democratic Party’s muted response to the Trump administration’s stringent immigration policies. He warns that the lack of robust opposition could embolden further anti-democratic actions, labeling the administration's agenda as the most radical it has ever been (14:00).

Conclusion

This episode of Apple News Today provides a comprehensive analysis of the Trump administration’s controversial tariff policies and their far-reaching economic implications. Through insightful discussions with Sean Donnan, listeners gain a nuanced understanding of the strategies, challenges, and potential outcomes of these policies. Additionally, the episode touches on critical issues such as wrongful deportation, aviation safety, and the intersection of immigration policies with cultural events, offering a well-rounded perspective on current events shaping the global landscape.

For more detailed coverage and ongoing updates, listeners are encouraged to access the full episode via the Apple News app.