Wall Street tumbles as trade war fears grow

A rough day on Wall Street saw investors sell off stocks over concerns that a Trump-led trade war could push the U.S. into a recession.

NBC-A rough day on Wall Street saw investors sell off stocks over concerns that a Trump-led trade war could push the U.S. into a recession. The White House downplayed market fears, attributing them to “animal spirits,” and instead highlighted a list of “50 wins in 50 days,” pointing to business leader support.

President Donald Trump on Sunday did not rule out the possibility of a recession this year, stating, “I hate to predict things like that. There is a period of transition.” He later added, “We’re going to take in hundreds of billions of dollars in tariffs, and we’re going to become so rich.” Following the administration’s tariffs on key trading partners, China retaliated with tariffs on U.S. agricultural products, including chicken, wheat, corn, and soybeans.

“You’re going to have a lot of farms go out of business if we continue on the current trajectory,” warned Caleb Ragland, President of the American Soybean Association. Canada also issued retaliatory tariffs, with Ontario escalating further by increasing electricity rates for 1.5 million Americans who rely on Canadian power exports. “If the United States escalates, I will not hesitate to shut the electricity off completely,” said Ontario Premier Doug Ford.

On Capitol Hill, lawmakers remain divided over the administration’s trade policies. “Donald Trump and House Republicans are crashing the economy and hurting hardworking American families,” said Rep. Hakeem Jeffries (D-NY). House Speaker Mike Johnson (R-LA) countered, saying, “I believe that the policies we’re putting forth will improve the economy and bring down costs for people. It takes a little while.” Meanwhile, lawmakers are racing to pass a funding bill before Friday to prevent a government shutdown, which could further add to economic uncertainty.