Most Voters Oppose Trump’s Tariffs, But His Supporters Are Still Behind Him

Summary

WSJ What’s News: Most Voters Oppose Trump’s Tariffs, But His Supporters Are Still Behind Him
Release Date: April 4, 2025
Host: Alex Osola, The Wall Street Journal

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Market Turmoil Amid Escalating Trade Wars

Alex Osola opens the episode by detailing the severe market reactions triggered by China's imposition of a 34% tariff on all imported goods from the United States. This move dampened hopes for a swift global trade settlement and sent U.S. stocks plunging:

• Dow Jones Industrial Average: Fell over 2,200 points, closing down 5.5%, marking a 15% decline from its recent peak and entering correction territory.
• Nasdaq: Dropped 5.8%, slipping into a bear market, defined as a 20% decline from its peak.
• S&P 500: Decreased nearly 6%.

Overall, the stock market shed a staggering $6.6 trillion in just two days, surpassing the previous record of $4.4 trillion lost in March 2020.

Quote:
"China's decision to apply a 34% levy... resulted in a really widespread brutal attack on markets," explains Crystal Herr, WSJ Markets Reporter, at [02:16].

Crystal Herr further elaborates on the widespread impact, emphasizing that the sudden tariff announcement caused widespread fear among investors, leading to significant losses across all major indices.

Federal Reserve's Stance on Economic Growth and Inflation

Federal Reserve Chair Jerome Powell addressed the economic implications of the tariffs in Virginia. Powell acknowledged increased risks of weaker economic growth but maintained a wait-and-see approach regarding interest rate adjustments:

• Higher Inflation and Slower Growth: Powell noted that tariff increases are likely to result in higher inflation and slower economic growth, though the extent and duration remain uncertain.

Quote:
"While tariffs are highly likely to generate at least a temporary rise in inflation, it's also possible that the effects could be more persistent," Powell stated at [04:14].

Prior to Powell's remarks, President Trump expressed his hope on Truth Social that the Fed would consider cutting interest rates to mitigate the economic impact of the tariffs.

Labor Market Resilience Amid Economic Uncertainty

Despite the turbulent economic landscape, the U.S. labor market showed unexpected resilience in March:

• Job Additions: The Labor Department reported a gain of 228,000 jobs in March, surpassing the expected 140,000.
• Unemployment Rate: Increased slightly to 4.2%, indicating more people entering the labor force.

Harriet Tory, WSJ Economics Correspondent, provided insights into the robust job creation:

Quote:
"We saw more jobs being created in sectors like health care, transportation, leisure, hospitality," Tory remarked at [06:08].

She cautioned that this strength might be temporary, citing factors like reduced immigration and increased economic uncertainty that could lead to more cautious hiring in the future.

Public Opinion Shifts on Trump's Tariff Policies

A recent Wall Street Journal poll revealed a significant shift in voter sentiment regarding President Trump's tariff policies:

• Opposition to Tariffs: 54% of voters oppose Trump's levies on imported goods, up from previous support.
• Perceived Price Increases: 75% believe tariffs will lead to higher prices on consumer goods, an increase from 68% in January.

Aaron Zitner, WSJ Reporter and Editor, discusses the implications of these findings:

Quote:
"By eight points people hold a more negative than positive view of his handling of the economy right now," Zitner highlights at [09:02].

Despite the majority opposition, Trump's core supporters remain steadfast:

Donald Trump comments on the poll results:

Quote:
"93% of the people who voted for Donald Trump... say he's doing a Good job," Trump stated at [09:02].

This dichotomy suggests that while general voter sentiment is turning against the current economic measures, Trump's unwavering base continues to support his leadership.

Impact on Initial Public Offerings (IPOs) and Corporate Actions

The market instability caused by the tariffs has led to a freeze in the IPO market:

• Postponed IPOs: Companies like StubHub, Klarna, Chime, and Hinge Health have delayed their IPO roadshows amid the uncertainty.
• Crypto Firm Circle: Also pausing its plans to go public, awaiting clearer market conditions.

Additional Economic Indicators and Corporate News

• TikTok Regulatory Developments: President Trump extended the deadline by 75 days to finalize a deal for TikTok's operation in the U.S., involving potential investors like Oracle, Blackstone, and Andreessen Horowitz.

• Consumer Behavior Trends: A notable decline in restaurant lunches, with a 3% drop in 2024 compared to the previous year, signals potential economic strain affecting discretionary spending.

Looking Ahead

The episode concludes with a preview of upcoming segments:

• Weekly Markets Wrap-Up: Scheduled for the following day.
• What's News Sunday: An in-depth analysis of how new tariffs might affect corporate earnings and strategic responses from businesses.

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Produced By: Anthony Banci and Pierre Bienname
Supervising Producer: Michael Kasmides
Theme Music: Michael Lavall
Development Producer: Aisha El Mousslem
Deputy Editors: Scott Salloway and Chris Zinsley
Head of News Audio: Falana Patterson

For more insights and detailed stories, visit WSJ.com.

Transcript

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[Alex Osola]

A Minecraft movie only in theaters. US stocks plunge as China hits back with 34% tariffs while oil prices tumble. Plus, Fed Chair Jerome Powell warns of weaker economic growth after the tariff hikes. And a new Wall Street Journal poll finds that voters soured on Trump's economic plans even before Wednesday's raft of new tariffs.

[Donald Trump]

Donald Trump has done so much in the first two and a half months of his new term that it's hard to keep track of it all. And voters are still scrambling to catch up with some of it.

[Alex Osola]

It's Friday, April 4th. I'm Alex Osola for the Wall Street Journal. This is the PM edition of what's news, the top headlines and business stories that move the world today. A sharp rise in trade war intensity sent Wall street spiraling today. China's decision to apply a 34% levy to all imported goods from the U.S. rattled markets in part because it further deflated hopes that a global settlement could be reached soon. Investors rushed into treasuries pushing 10 year yields well below 4% before they drifted back up later. Oil prices slid further with benchmark US crude falling to about $62 a barrel. All major US indexes dropped today, ending a brutal week. The Dow fell more than 2,200 points, closing down five and a half percent lower today. It's down about 15% from its recent high, putting it in correction territory. The Nasdaq dropped 5.8%, pushing it into a bear market, which denotes a 20% decline from its peak. And the S&P 500 slid nearly 6%. The stock market has shed $6.6 trillion in the past two sessions. That's a new record, beating even the $4.4 trillion shed in March 2020. I'm joined now by Crystal Herr, who covers markets for the Journal. Well, Crystal, another day, another mess in the markets. What happened today?

[Crystal Herr]

So we saw a lot of investors really scared by the fact that China said that it is going to retaliate against the US with a 34% levy on its own on all imported goods from the U.S. so we saw this hit the stock market really hard. We saw the s and P500 drop 6%, the Nasdaq sliding about 6% as well. The Dow Jones Industrial Average fell about 2,000 points. And we saw this hit across the market. It was a really widespread brutal attack on markets.

[Alex Osola]

Yesterday we saw the Magnificent Seven really take a hit. How'd they fare today?

[Crystal Herr]

Not so great. They have lost about $1.6 trillion of market cap this week, which is a pretty sharp about face from the last two years. We had seen these stocks really be at the forefront of the bull market rally, but now we're seeing that a lot of these stocks are actually down quite a bit with double digit percentage losses for the year.

[Alex Osola]

So this has been two pretty rough days for the market. What can we expect on Monday?

[Crystal Herr]

I'm not too sure. That's sort of the question on everyone's minds right now. A lot of people say that this has been unprecedented. They think that this could be the beginning of sort of a new regime for markets where that bull market rally that we've seen for the past two years is unlikely to jumpstart again anytime soon.

[Alex Osola]

That was WSJ reporter Crystal Herr. Thank you, Crystal.

[Crystal Herr]

Thanks.

[Alex Osola]

Federal Reserve Chair Jerome Powell warned of higher prices and weaker growth after President Trump's tariff hikes.

[McDonald's Ad]

While uncertainty remains elevated, it is now becoming clear that tariff increases will be significantly larger than expected. And the same is likely to be true of the economic effects, which will include higher inflation and slower growth. The size and duration of these effects remains uncertain. While tariffs are highly likely to generate at least a temporary rise in inflation, it's also possible that the effects could be more persistent.

[Alex Osola]

In remarks in Virginia, Powell indicated that the central bank was still comfortable with its wait and see stance. While he acknowledged that risks of weaker growth had increased, he said it was too soon to say how the Fed would adjust interest rates to cushion the economy from the blow of weaker global trade. Ahead of Powell's remarks, President Trump posted on Truth Social saying he hoped the Fed would cut interest rates. There was a glimmer of hope that initial public offerings in the US Were about to return. Now that hope is gone as multiple companies are scuttling their plans to go public as the tariff turmoil freezes the IPO market. People familiar with the matter say that ticketing marketplace StubHub and buy now pay later company Klarna are postponing their IPO roadshows, which were set to kick off next week. Some of those people also said that another fintech company, Chime, is pushing off filing its financials publicly with regulators and is delaying its ipo. And they said that virtual physical therapy company Hinge Health is watching the market before its anticipated late April offering. Meanwhile, crypto company Circle had been nearing its next steps in going public, but some of the people said the company is now watching anxiously before deciding what to do. Employers added jobs in March at a much stronger pace than expected. The Labor Department said today that the U.S. added 228,000 jobs last month, well above the gain of 140,000 jobs that economists expected. Meanwhile, the unemployment rate, which is based on a separate survey from the jobs figures, ticked up to 4.2% as more people entered the labor force. For more on what these numbers mean, I'm joined by WSJ economics correspondent Harriet Tory. Harriet, the labor market in March seems to have remained strong despite economic uncertainty. Government layoffs, market turbulence. How, how has it stayed this strong?

[Harriet Tory]

Yeah, it was a big surprise. Largely what happened was that we saw more jobs being created in sectors like health care, transportation, leisure, hospitality. So those really bounce back. The government layoffs, of course, were an issue for this month, but what we saw was that the layoffs were actually pretty modest. It was just 4,000 jobs. But one thing that is worth bearing in mind is that people who were receiving severance weren't necessarily counted as laid offs. So there could perhaps be more people who are not working than expected.

[Alex Osola]

Of course, the mood about the economy is in a little bit of a different place now because of tariffs. Is the strength that we see in the labor market expected to continue?

[Harriet Tory]

The economists who I've spoken to today have largely said that they see this as backward looking data, which it is. This is the month of March. A lot has changed since then. And there is an expectation that this is maybe the last hurrah and that we will see weakness starting to show through in the months ahead for a number of reasons. We have less immigration, so that's potentially a smaller labor force. There's federal layoffs and businesses, they're dealing with a lot of uncertainty and a lot of economists expect that they will be certainly more cautious about hiring in the months ahead.

[Alex Osola]

That was WSJ economics correspondent Harriet Tory. Thank you, Harriet.

[Harriet Tory]

Thanks.

[Alex Osola]

Coming up, a majority of US voters oppose Trump's levies, but the people who voted for him still support him. More after the break.

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[Alex Osola]

Americans elected Donald Trump with a favorable opinion of his economic plans. Now, though, his expansive push for tariffs is making voters skeptical. A new Wall Street Journal poll found that 54% of voters oppose Trump's levies on imported goods, while 42% support his plans. 75% of voters said that tariffs will raise prices on the things they buy, up from 68% who said so in January. The Journal survey was conducted from March 27 through April 1, a time when Trump had imposed new tariffs on China and certain goods from Canada, Mexico and elsewhere, but before his Wednesday announcement of sweeping levies on nearly all U.S. trading partners and the subsequent market sell off. Here to tell us more about what these results mean is WSJ reporter and editor Aaron Zitner. Aaron, this is a shift from the past. Past Journal polls before Trump took office found voters mildly supportive of tariffs in general. What's changed since then?

[Donald Trump]

We found that kind of an open mind that people were holding on tariffs while they were just an idea. A campaign proposal from a candidate had become a more hardened skepticism or opposition once the tariffs were upon us. And remember, economic savvy is Donald Trump's calling card. And yet we find that by eight points people hold a more negative than positive view of his handling of the economy right now. And by 15 points people have a more negative than positive view of his handling of inflation. And that kind of plays against his brand.

[Alex Osola]

What does more voter skepticism mean for Trump?

[Donald Trump]

Well, voters are in a wait and see attitude. We find that 46% of people overall have a positive view of how the president is handling his job, and 51% have a negative view. And that's a bit of a change from January. When we talk to people right before he was inaugurated, we also find that people really aren't revisiting their votes from 2024. 93% of the people who voted for Donald Trump and who participated in our poll say he's doing a Good job. Only 6% of people who voted for him say they disapprove of how he's handling the job. So there's a lot of stability there, but underneath it we're finding vulnerability. People are anxious. It's a worrisome moment. They don't know what the effect of tariffs are going to be. And to some degree it's a wait and see posture.

[Alex Osola]

That was WSJ reporter and editor Aaron Zittner thank you Aaron.

[Donald Trump]

Good to be with you.

[Alex Osola]

To see more about this poll, check out our story on WSJ.com, we'll leave a link in the show. Notes in other news, President Trump signed an executive order today that grants a 75 day extension to reach a deal to operate TikTok in the US he had faced a Saturday deadline to act, having previously suspended enforcement of a 2024 law calling for TikTok to be sold or shut down in the US on Wednesday, Trump reviewed a proposal in which roughly a dozen potential investors, including cloud computing company Oracle, private equity firms Blackstone and Silver Lake, and venture capital firm Andreessen Horowitz, could take an ownership stake in an American operated TikTok. It wasn't immediately clear which investors had emerged as part of the deal. Amazon also made an 11th hour bid, as did mobile technology company Applovin. And finally, if you want to get an indication about how the economy is doing, just look around your office. Is the fridge a little more crowded than usual? Does a line form in front of the microwave at lunchtime? That may be because more employees are eating lunches brought from home than they have in years. According to consumer analytics firm Circana, the number of lunches bought from restaurants and other establishments nationwide fell 3% in 2024 from the year before. That's fewer than were purchased even in the height of the pandemic work from home era in 2020. That's bad news for the delis and cafes catering to office workers that had barely survived the pandemic lockdowns. But it's also a bad sign for the economy that many workers are finding the prospect of picking up lunch too rich for their wallet. Interested in seeing what our lunchboxes say about the economy? We'll leave a link to our story on WSJ.com in the show notes. And that's what's news for this week. Tomorrow you can look out for our weekly markets wrap up what's News in Markets? Then on Sunday, we're bringing you an episode of Our Sister podcast, WSJ's take on the Week, looking at how the new tariffs may impact corporate earnings and what companies are doing to plan around them. That's in what's New Sunday, and we'll be back with our regular show on Monday morning. Today's show was produced by Anthony Banci and Pierre Bienname, with supervising producer Michael Kasmides. Michael Lavall wrote our theme music. Aisha El Mousslem is our development producer. Scott Salloway and Chris Zinsley are our deputy editors. And Falana Patterson is the Wall Street Journal's head of news audio. I'm Alex Osola. Thanks for listening.