Buffett's Tariff Warning, Trump's CHIPS Act Repeal, And S&P 500's Post-Election Slump: This Week In Economics
The past week has been a rollercoaster ride for the financial world. From Warren Buffett’s stern warning about tariffs to President Trump’s call to end the CHIPS Act, the market has been grappling with a flurry of developments.
Here’s a quick recap of the top stories that made headlines over the weekend.
Buffett Calls Tariffs ‘An Act Of War’
Buffett characterized tariffs as "an act of war" that functions as a consumer tax. This comes as markets grapple with President Donald Trump‘s recent implementation of 25% tariffs on Canadian and Mexican imports. Buffett, in an interview with CBS News, was blunt about the impact of tariffs on inflation, stating that they are a tax on goods.
Read Also: Tariffs, Trump, Tumult: How To Trade The Volatility Surge
Trump Seeks To End CHIPS Act
In a surprising move, President Donald Trump called for ending the CHIPS Act during his joint address to Congress. The Act provides manufacturing incentives to semiconductor companies setting up their facilities in the U.S. Trump criticized the legislation, urging U.S. House Speaker Mike Johnson to “get rid” of it.
Trump Considering Tariff Relief For Mexico, Canada
Commerce Secretary Howard Lutnick revealed that the Trump Administration is considering rolling back some of the tariffs placed on Mexico and Canada. Lutnick stated that Trump will make his decision on tariffs on Wednesday afternoon.
US Dollar Weakness A ‘Symptom Not Cause’
As the U.S. dollar witnessed its largest two-day decline in over two years, experts argue the importance of devaluation for global growth. The macro strategist at Crescat Capital, Otavio Costa, highlighted that the dollar "needs to be devalued to restore global growth."
Trump Bump Turns Into A Slump
The S&P 500 has now wiped out all of its post-election gains, shedding a staggering $3.3 trillion since its Feb. 19 peak. This equates to a brutal $330 billion in market cap per trading day over the past two weeks.
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This story was generated using Benzinga Neuro and edited by Ananya Gairola
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Posted-In: CHIPS Act Donald Trump Howard Lutnick Warren Buffett Weekend RecapNews Economics
