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

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.

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"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:

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"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:

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"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.

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.