The Daily: How Trump Wiped Out $10 Trillion in Wealth in 3 Days
Hosted by Michael Barbaro | Released April 8, 2025
Introduction
In this gripping episode of The Daily by The New York Times, host Michael Barbaro delves into the catastrophic three-day span where former President Donald Trump's aggressive tariff policies led to a staggering $10 trillion loss in global wealth. Through insightful conversations with renowned journalists Andrew Ross Sorkin and Jonathan Swan, the episode unpacks the intricate dynamics between Trump's trade war strategies, the plunging stock markets, and the wavering confidence of the business community.
1. The Stock Market Crash Triggered by Tariffs
Timestamp: [00:00 – 03:10]
The episode begins with Michael Barbaro highlighting a significant downturn in global stock markets, attributing the chaos to President Trump's implementation of universal tariffs. The immediate consequence was the declaration of a bear market in the US, coupled with escalating retaliations from China.
Notable Quote:
- Andrew Ross Sorkin: "President Trump is doubling down now, threatening even bigger tariffs on imports from China, 50% if the country does not revoke its retaliatory tariffs on American products sold there." [01:04]
Scale of Loss: Andrew Ross Sorkin emphasizes the unprecedented scale of the market crash, noting, “we're talking about trillions of dollars with a T” lost in corporate value. He elaborates that the markets have seen a decline of over 20% from their peaks near the election, translating to immense personal and national economic losses.
Notable Quote:
- Andrew Ross Sorkin: "We are down 10% peak to trough from the sort of heights of where we were near the election to now, you could argue we are over 20% off, maybe more depending on how you do the math." [02:44]
2. Impact on Major Companies
Timestamp: [03:10 – 09:23]
Sorkin provides a detailed analysis of how Trump's tariffs have disproportionately affected major corporations. He uses Apple as a primary example, stating the company's stock plummeted by 18% in five days, resulting in a $700 billion loss in value.
Notable Quote:
- Andrew Ross Sorkin: "Apple's a company that manufactures a lot of its goods in a combination of places like China, increasingly in places like Vietnam and India... $700 billion wiped out." [04:38]
*Apple's predicament illustrates the broader issue: companies face the dilemma of either absorbing the increased costs or passing them onto consumers, both of which adversely affect profits and stock valuations. This domino effect extends to other giants like Meta, where increased costs in building data centers and reduced advertising revenues have led to a significant drop in stock prices.
Notable Quote:
- Andrew Ross Sorkin: "Meta is reliant on advertising. And there are going to be a lot of companies that are going to likely scale back how much they're going to spend on advertising at places like Meta." [08:19]
3. Business Leaders' Response
Timestamp: [09:23 – 14:08]
The episode explores the wavering support Trump has among business leaders. As corporate values decline, even those who previously supported Trump, such as billionaire investor Bill Ackman, are reconsidering their stance.
Notable Quote:
- Andrew Ross Sorkin: "They have been rushing to try to get in his ear. But I don't think that CEOs are calling him saying, Mr. President, you have made a terrible, terrible error." [12:23]
Despite the majority of CEOs privately acknowledging the detrimental impact of the tariffs, public dissent remains rare. Exceptions include Bill Ackman and Elon Musk, who have made public remarks questioning the sustainability of Trump's tariff policies.
Notable Quote:
- Andrew Ross Sorkin: "Bill Ackman then kind of rolled it back and Elon Musk coming out and saying, I don't know about these tariffs." [14:08]
4. President Trump's Stance and Advisors
Timestamp: [14:08 – 18:35]
Jonathan Swan provides an in-depth look into Trump's unwavering commitment to his tariff strategy. Despite mounting evidence of economic turmoil and eroding business confidence, Trump remains steadfast, viewing the tariffs as essential for reshoring manufacturing and eliminating trade deficits.
Notable Quote:
- Jonathan Swan: "What he's been saying when people call him... he's in that kind of a mode to do tariff deals. Yes, because I put out these tariffs, everyone's coming to beg, which is a position he loves to be in." [21:05]
Trump's advisors, recognizing the precarious situation, are reportedly seeking an "off ramp" to mitigate the damage. However, Swan indicates that Trump himself shows little inclination towards easing these measures, maintaining his long-term economic vision.
Notable Quote:
- Jonathan Swan: "So if there's ever a subject to take Donald Trump literally about, it's tariffs." [35:05]
5. Political Fallout
Timestamp: [18:35 – 30:42]
The aggressive tariff stance has ignited tension within Republican circles. While privately many Republican members of Congress are anxious about the economic repercussions, Swan remains skeptical about a public revolt against Trump's policies.
Notable Quote:
- Jonathan Swan: "I don't have any sense that this is going to be a Congress that will step out and defy this present." [30:42]
Despite a few Republican members co-sponsoring legislation to restrain Trump's tariff powers, the likelihood of Congress taking significant action remains low unless the economic situation deteriorates further.
6. Future Implications
Timestamp: [30:42 – 35:17]
Looking ahead, both Sorkin and Swan discuss the potential long-term effects of Trump's tariff policies. The uncertainty has stifled business investments, with many CEOs adopting a wait-and-see approach. The persistent economic instability threatens to overshadow Trump's previous image as a successful businessman and economic steward.
Notable Quote:
- Jonathan Swan: "One problem that some of his advisers have... is get criticized a lot for, well, your messaging is so all over the place." [23:12]
The episode underscores the precarious balance Trump faces: continuing his tariff strategy could either lead to a trade revolution or precipitate a deeper economic crisis, fundamentally altering perceptions of his leadership.
7. Conclusion
Timestamp: [35:17 – End]
As the episode wraps up, Jonathan Swan reflects on the broader political and economic landscape, emphasizing the rarity of a single individual causing such widespread market upheaval. The potential for this crisis to redefine Trump's legacy and alter the American economic trajectory cannot be understated.
Notable Quote:
- Jonathan Swan: "So if you think about it, the whole idea that if you had a lot of money, you were somehow protected... emboldened to stand up so far has not been the case." [14:08]
Michael Barbaro closes by highlighting the growing disconnect between Trump's economic policies and the sentiments of the business community, setting the stage for what could be a pivotal moment in American economic history.
Final Thoughts
This episode of The Daily offers a comprehensive exploration of the immediate and far-reaching impacts of Trump's tariff policies on the global economy. Through expert analysis and firsthand accounts, listeners gain a nuanced understanding of how a single policy decision can reverberate across multiple sectors, influencing everything from stock markets to international trade relations. As the situation develops, the episode leaves audiences contemplating the delicate interplay between political will and economic stability.