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US stocks (^DJI, ^GSPC, ^IXIC) plunged after President Donald Trump unveiled new tariffs. RSM chief economist Joe Brusuelas joins Market Domination with Yahoo Finance Head of News Myles Udland and Epistrophy Capital Research's chief market strategist and host of "The Drill Down Podcast" Cory Johnson, to discuss the tariffs and what the market needs from Trump.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
looking at just the economic impact that we think may come to pass from what we've heard so far. How did you look at it in the initial hours on trying to guesstimate a an overall tariff rate or what this would mean for GDP inflation? Like how have you looked at what your forecasts and assumptions were and tried to revisit them maybe in the last two days?
We thought the effective tariff would end up around 20%. It's 23%. I thought we'd end up with a 12 to 15% average weighted tariff. That's a little under 19%. So, in many ways, it landed sort of where we thought it would, but the problem is the execution of it. That nonsensical introduction
Madagascar.
Yeah, of the of the of the formula. These aren't reciprocal tariffs. These are punitive tariffs, and it's the loss of credibility on the part of the administration, the loss of confidence of markets in them, which is what's causing this. They really need to step in and say, hey, we have an off-ramp here. This isn't a leverage negotiating situation. Or I love the Dodgers. They bring in the high leverage reliever. They got to get the high leverage reliever off the off the bench and get it in the game because we can't go on with this.
But they don't but here's what's different about Trump 2.0, right? Is that there there aren't relievers there. There aren't different. There are it does not seem that there are voices in the administration as there were in the first time when Trump was president, voices that can disagree, voices that can say, interesting idea. What about this? Everyone's all in the same boat here, and they're all going the same direction. They're all leaning on the same side, if I can stay on that.
I have to admit earlier today, I'm like, where's Gary Cohn? And I remember like, oh, that's right, he's not there.
Yeah. Right. Right? And that's the problem.
Yeah, I was gonna say, is it about, um, the agreement or not? Or is it just simply the presence of folks like Gary Cohn, like Stephen Minuchin, who really had the trust of the market? And right now, it feels like there's no one in that administration that an investor can look to and say, oh, okay, that guy's on TV. He'll probably calm things down.
We're here amongst friends. This is a Wall Street.
Yes, we are. We are, right? We all we all know who Howard is. He's not the guy, right? What we need is Bess to step up.
Yeah.
You probably don't want long as I know.
Yeah, no, we we all know Howard. He's not he's not the guy, right? Keep sending Peter Navarro out on television every morning. You're gonna you're gonna get the same outcome. We really need Scott Beson to step up and play a more pronounced role to calm and soothe nerves. Or again, this is just gonna continue to go on. You know, we were talking just before that we started the show. We're not that far from them stopping trading at this point. That's how far down we are.
He's not the guy.
Yeah. That's right.
Well, we don't have to get to my point as we talk about this White House. We don't have a team of rivals, right? We've got a team of of sycophants. They they they agree very strongly on the same things, and it does seem that a good part of America believes whatever the White House tells them and really wants to believe that those things are true. And so there does the and we have a for lots of interesting reasons, we have a media echo chamber where they're not hearing the voices that everyone else is hearing, and people are hearing the voices that they want to hear. So they're not they're hearing cheerleading from the media outlets they want to be on, from the places on X that they want to be on, from the, you know, you talk about are these already surgical decisions here. These are people who celebrate cutting jobs with chainsaws. And there there's there's no sort of notion that nuance is a good thing.
Right. I mean, it was very clear to me when they introduced the Madagascar equation that they have a very low evaluation of what Wall Street is, and we all figured it out within about an hour. And we could tell that this just didn't sum up, right? And then that's what really set the tone for Thursday and Friday.
Right.
