CNBC host Jon Fortt calls Donald Trump's tariffs “worse than worst-case scenario that many in the market expected”
Jon Fortt: “While many were hoping that this would eliminate uncertainty, there’s going to be more uncertainty in the market”
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From the April 2, 2025, edition of CNBC's Closing Bell: Overtime
MORGAN BRENNAN (HOST): It’s President Trump at the Rose Garden at the White House. It looks like he is preparing to perhaps sign this executive order tied to this very sweeping policy that was just announced, what he called, quote, "kind reciprocal tariffs," a baseline 10% tariff across the board on countries with the 60 worst offenders tiered structure.
So China, for example, including tariffs, currency manipulation, and trade barriers, charging a "discounted 34% tariff," layer that on top of a 20% existing tariff, you get to 54%. EU 20%, Vietnam 46%, Taiwan 32%. We can go down the list here. Fentanyl tariffs on Canada and Mexico staying in place with the exception of USMCA-compliant goods. And all of this going into effect at midnight tonight.
JON FORTT (HOST): And the market reaction after hours – I’ve never seen anything like it. This, I think, fair to say, is worse than the worst-case scenario of the tariffs that many in the market expected the president to impose. You laid out a number of the percentages there, and there’s some question of how the administration calculated the percentages that they’re responding to in each of these cases. Are they adding in value-added taxes? He talked about, you know, non-tariff barriers as well. So, I think while many were hoping that this would eliminate uncertainty, there’s going to be more uncertainty in the market.