Markets are hoping to gain more clarity about Trump’s tariffs this week. Trump said Sunday that reciprocal tariffs on all countries would come Wednesday, which he dubbed as “liberation day.”
White House press secretary Karoline Leavitt said Monday that “it’s time for reciprocity, and it’s time for a president to take historic change to do what’s right for the American people, and that’s going to take place on Wednesday.”
Concern is growing that the forthcoming duties could spark a steep economic slowdown, and perhaps even a recession. Economists polled by CNBC now only forecast first-quarter growth of 0.3%, compared to 2.3% in the fourth quarter of 2024.
Investors are hoping that as the levies take hold, at least some of the uncertainty around tariff policy from the U.S. could be alleviated as a clearer picture emerges around how the tariffs will play out in practice. However, it appears likely that negotiations with trading partners will continue beyond the next few days, and retaliatory measures as well as more duties from the U.S. could be imposed.
Investors will also contend with a busy week on the data front, with several key labor market reports due to be released. This includes February’s JOLTS job openings report on Tuesday, ADP’s private payrolls data for March on Wednesday and the all-important March jobs report, which includes nonfarm payrolls and unemployment figures, on Friday.
