- In the day -day CEO today: Diane Brady in Trump's new tax for international trade.
- The Big Story: Tariffs are worse than expected.
- The markets: Global Sellooff under the way.
- Analyst notes From the funding of wedbush, ey, and swoop – you guessed it – the tariffs, work, and tesla.
- Plus: All news and watercooler chat from Fate.
Good morning. Friend or enemy? It was hardly important yesterday as Donald Trump opened targets to sweep against all United States trading partners. Headline numbers to know: a 10% baseline tariff in all imports, with specific and higher tariffs in some countries, including 34% in China (at the top of existing 20% tariffs), 20% in the EU and as high as 46% and 49% in Vietnam and Cambodia respectively. “They do it to us, we do it with them,” the President said during the Rose Garden opening. Some foods for thinking as the fall begins:
It is worse than expected. While the White House does not release the plan details until Tuesday, markets show some signs of life as investors expect the last minute gentleness. But stock futures dive into dive following Wednesday's announcement. Only about half of what Americans bought in America, according to Commercial Data Dataand industries such as the auto sector with a complex global supply chain.
It drops China+1's approach to China+1. Some Asian countries are especially difficult to hit with Tariffs that are 40% or more. The GAP Inc. – Home to Gap, Athleta, Banana Republic and Old Navy – has reduced its exposure to China in recent years but still Source most of its clothes From Asian countries that are targeting new tariffs. The change takes time.
A global backlash can hurt all companies. Trump described the tariffs yesterday as “kind” to American trading partners. From the anger of Foreign leaders To foreign consumers who have boycotted us products and travels, our partners are clearly disappointed. Hate is bad for business, along with economists from EY, Goldman Sachs, and moods that predict lower growth from self -tariff wounds. I spoke this week with Niccolo de Masi, CEO of Quantum Computing Company IonQ. “We have built all our belongings in America,” he said. “We are not negatively affected by tariffs but it is realistic that our ability to succeed in Asia and Europe has a greater existence there.” It would be harder to do that if a trade war exploded with nationalist instincts.
It can destroy hard economies and industries. Jacques Vandermeiren, the CEO of the Port of Antwerp-Bruges, Europe's second largest port, told my colleague Peter Vanham earlier this fall, “If Trump puts the tariffs of up to 10 percent, we will deal with it.” Higher than that, Vandermeren warned, could spell disaster for steel, aluminum, auto, and other export-focused industries. Switzerland that struggles with the watch industry, which Its products are exported more than the US than in another countryIt will now face a heavy 31% tariff. Do those who want a Rolex or Patek Philippe will arrange for a replacement? I doubt it.
There will be plenty of conversations in the coming days and business leaders know from experience that what will appear on the paper at a press conference may not be translated into border action – or may be quickly reversed. And US buyers, who spending accounts for over two-thirds of GDP, are not looking excited for all the tariffs they have been told will help them finally. Consumer sentiment Track by the University of Michigan has been trending this year to the lowest level since 2022.
Adam Smith once wrote that countries rarely develop by begging their neighbors. That was in 1776, when Mercantilism died and the US was born. Freed from the British rule, young countries use tariffs to produce homegrown industries that eventually compete in the world stage. With a globally connected to us today to return to tariff levels last seen in the early 1900s, as cars will only come to the scene, the impact may be a bit different.
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Contact the CEO day -day by Diane Brady at Diane.brady@fortune.com
This story was originally featured on Fortune.com
