The stock market fell into the red on Tuesday after regaining losses on Monday. The consensus is that no one knows what will happen once the Trump administration’s tariffs go into place and Wall Street doesn’t like uncertainty.
President Trump said that he is willing to put a 104% tax on China and China basically said: Bring it.
“China is not a seeker of trouble. But make no mistake: when challenged, we will never back down. Intimidation and threats never work with China,” read a statement by the Lin Jian, Foreign Ministry Spokesperson.
The President also announced that he will put tariffs on pharmaceuticals. At an event on Tuesday, he said this: “We’re going to tariff our pharmaceuticals and once we do that they’re going to come rushing back into our country because we’re the big market… So we’re going to be announcing very shortly a major tariff on pharmaceuticals and when they hear that, they will leave China, they will leave other places because they have to – most of their product is sold here and they’re going to be opening up their plants all over our country.”
Guess who that would hurt badly? Europe. Many pharmaceuticals sold in the U.S. are made in Europe, India and China. CEOs from Big Pharma in Europe issued this panicked statement to European Commissioner Ursula von der Leyen saying that Europe must change the way it does business to compete with the U.S. or risk losing billions of Euros of investment.
