👋 Higher than expected tariffs

worse than expected crash

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Good morning investors! Everyone’s scared as investors and countries prepare to deal with additional tariffs.

Today we cover:

  • Trump’s new tariffs

  • A look at Tesla sales

  • Other car numbers

📊 Economy and News 

The Golden Age or Market Chaos? Trump's Tariff Gamble

The Trump administration's latest tariff policy has sent shockwaves through global markets, with Wall Street reacting sharply to sweeping new import duties.

Shares of retailers of imported goods were among the hardest hit. Five Below lost 11% and Gap plunged 12%.

Tech also suffered. Shopify fell about 10% and Apple went down nearly 6% in extended trading. Nvidia, which manufactures chips in Taiwan and assembles its systems in Mexico and elsewhere, fell 4%, while Tesla lost about 4.5%. Lastly, Meta saw a decline of 6%.

The White House announced a 10% baseline tariff on all countries, with higher rates targeting specific nations. However, Canada and Mexico will be exempt for now, with a 25% tariff set to take effect if previous trade penalties are lifted.

President Trump, outlining his vision in a Rose Garden speech, justified the move as a necessary response to economic imbalances. He accused trading partners of imposing unfair barriers and vowed to level the playing field.

“We will charge them approximately half of what they are and have been charging us,” he stated, referencing his "reciprocal tariff" plan. While the policy aims to boost domestic production, it also raises concerns about escalating trade tensions.

The announcement triggered an immediate market downturn. The SPDR S&P 500 ETF Trust (SPY) fell 2.2%, while the Invesco QQQ Trust, tracking the Nasdaq-100, dropped 3%.

Investors reacted swiftly to additional tariff hikes, including a 25% duty on foreign-made automobiles and sharp increases targeting China (54% total), the European Union (20%), Vietnam (46%), and Taiwan (32%).

Despite the economic risks, Trump remains confident that his aggressive trade stance will usher in what he calls “the Golden Age of America,” driven by job growth and a resurgence in domestic manufacturing.

Reminder: About 60% of our subscribers had predicted a fall after the announcement.

On the other hand…a silver lining…

The 10-Year Treasury is almost under 4%, which is typically seen as recessionary, however, Treasury Secretary Bessent and Pres. Trump have been focused on getting the 10 year below 4% as a way to finally bring down rates and curb inflation. The Fed has been unable to reach the magic 2% target and a recession may be the only way to do it.

Bessent said in an interview with Bloomberg that the administration aimed to bring down the 10 year “naturally” by reducing government spending, increasing oil and gas supply to bring down prices and implementing deregulation (they’re doing all those). The tariffs likely played a major part in driving down the rate. A lower rate also makes the U.S. debt interest payments cheaper.

Global hits:

Have an 🥚: The egg shortage may have finally been cracked. The price of wholesale eggs fell another 9% last week to $3.00 a dozen. According to the USDA, egg prices are down a total of over 60% since the Trump administration put a $1 Billion plan in place to get prices down. **Keep in mind retail prices lag wholesale prices.

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Sponsored by Ryse

Apple's New Smart Display Confirms What This Startup Knew All Along

Apple has entered the smart home race with its new Smart Display, firing a $158B signal that connected homes are the future.

When Apple moves in, it doesn’t just join the market — it transforms it.

One company has been quietly preparing for this moment.

Their smart shade technology already works across every major platform, perfectly positioned to capture the wave of new consumers Apple will bring.

While others scramble to catch up, this startup is already shifting production from China to its new facility in the Philippines — built for speed and ready to meet surging demand as Apple’s marketing machine drives mass adoption.

With 200% year-over-year growth and distribution in over 120 Best Buy locations, this company isn’t just ready for Apple’s push — they’re set to thrive from it.

Shares in this tech company are open at just $1.90.

Apple’s move is accelerating the entire sector. Don’t miss this window.

Past performance is not indicative of future results. Email may contain forward-looking statements. See US Offering for details. Informational purposes only.

📈 Stocks

S&P 500 5.670,97 (+0.67%)
DJIA 42.225,32 (+0.56%)
NASDAQ 17.601,05 (+0.87%)
BRENT CRUDE 74.96 (+0.62%)
* Prices as of Apr 3rd, 12:20 AM UTC

Tesla struggles but there’s a silver lining

Tesla's production and sales dipped in Q1 2025, with deliveries at 336,681 and production at 362,615, down from 386,810 and 433,371 the previous year.

The decline stems from zero channel inventory and the shutdown of its top-selling car line for most of early Q1 as they retool for an upgrade.

In China, Tesla sold 78,828 vehicles in March, down 11.5% year-on-year, facing stiff competition from local rivals like BYD. However, 2024 sales were up 8.8% over 2023

Deliveries fell short of the expected 360,000-370,000, while protests and boycotts linked to Elon Musk’s political moves added pressure.

Tesla stock, coming off its worst quarter since 2022, rose slightly amid reports Musk may soon leave his DOGE role. Stocks dipped again when he confirmed he’s stay until next year.

On the bright side, Energy shines: Megapack capacity is set to triple in 2025, with 30% margins, potentially valuing the division at $1 trillion alone.

🚗 Other manufacturers: GM's new vehicle sales surged 16.7% in Q1 2024, driven by strong demand for its all-electric models, including the Cadillac Escalade IQ and Optiq, as well as growth in entry-level crossovers and full-size SUVs.

The automaker is expected to have outpaced industry sales, which analysts had initially projected to grow by 1% or less.

Hyundai and Kia saw sales rise about 10% and 11%, respectively, while Nissan gained 5.7%, Honda 5.3%, and Toyota around 1%.

In contrast, Stellantis' sales dropped 12% amid a turnaround effort, and Ford declined 1.3%, partly due to discontinuing the Edge SUV.

Exciting: The Switch 2 launches June 5 for $449.99, offering a larger, faster upgrade to the original, which has sold 150 million units since 2017. Nintendo will release titles like Mario Kart World, Street Fighter 6, Donkey Kong Bananza, Super Mario Party Jamboree, The Duskbloods, and Kirby Air Riders.

Good to know: Amazon submits bid for TikTok as ban deadline nears. Elsewhere, US senate committee opens review into Meta’s efforts to gain access to China.

💵 Personal Finance

AI Tools for Video Creation

You can use these AI tools to make money:

Wondershare Filmora Filmora is a video editing platform that uses AI to simplify the video creation process. By integrating features such as copyright-free music and customizable effects, Filmora helps you produce professional-quality videos. Video creators can monetize their content by editing videos for clients or creating branded content for marketing campaigns, allowing them to charge premium prices for their services.

Descript is another excellent AI video editing tool, which is perfect for creating marketing videos. With video being the dominant form of content in marketing, businesses are willing to pay for professionally edited videos. You can use Descript to quickly create and refine videos, making it easier to turn a profit by selling your video creation services or posting content that earns through ad revenue.

💰 Be a Better Investor

“Without continual growth and progress, such words as improvement, achievement, and success have no meaning."

Benjamin Franklin

Resources:

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👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.