Historic Day IN Markets - Tariff Terrors Hit hard (Patreon)

Tariff Terrors are real because Trump’s 25% tariffs on Canada and Mexico, effective March 4, 2025, disrupt trade—think auto parts, energy, agriculture—raising costs, squeezing margins, and risking a trade war.

Markets hate uncertainty, and GDP could shrink as imports surge then crash. The macro picture is grim with slowing manufacturing, higher costs, and shrinking exports; lower rates might signal weakness, while slashed prices could tank earnings. Macro is awful as I have said for a while, Mfg numbers out today were nightmarish.

Markets are spooked—S&P 500 dropped 1.76%, losing $1.5 trillion, and crypto shed $300 billion in five hours, or $360 billion hourly, worse than Bank of America’s market cap. This $1.8 trillion dip was historic, rivaling past crises, sparked by Trump’s hardline stance. It’s a growth-threatening, market-rattling gut punch.

More pain to come unless there is a rapid rise in liquidity and a rate cut or two.

Meanwhile GDP Forecast tanking more each day - worse than last week