Trump marks 100 days in office amid economic crisis concerns

DW (English)

On the eve of US President Trump's inauguration, the US was viewed as outpacing the EU economically by a wide margin. But now, after 100 days into Trump's second term, fears of an impending economic crisis are growing.

Transcript

00:01Liberation Day, April the 2nd.

00:03This list shocked the world.

00:05Higher tariffs apply both to major U.S. trading partners and smaller economies.

00:10Allies and rivals alike.

00:14Investors all around the world were astonished.

00:17The global economy has not been confronted with tariffs of this magnitude for decades.

00:23The S&P 500 lost more than 10% the following days.

00:27Trillions of dollars were lost.

00:29The Economist called it Ruination Day.

00:32Many investors, Obliteration Day.

00:34Facing a global market meltdown just one week later,

00:38Donald Trump abruptly backed off his tariffs on most nations for 90 days,

00:42giving markets a relief, but nerves are still frayed.

00:47Many investors fear that President Trump's tariffs,

00:50whatever their eventual form, will stoke inflation and depress economic growth.

00:54This economy was in good shape without this uncertainty.

01:01So we know we have a stable base.

01:04But as businesses and consumers pause, we could get a self-fulfilling slowdown.

01:10We even could eventually get a recession if businesses in particular feel they can't make investment decisions.

01:16President Trump aims to make imports pricier to boost U.S. manufacturing.

01:23European pharma giants Russia and Novartis have announced major U.S. investments.

01:28But Tata Technology from India and Italy's Pirelli have postponed theirs over tariff uncertainty.

01:33Uncertainty worldwide usually means investors flock to buy U.S. bonds and U.S. dollars,

01:41generally regarded as safe haven assets, but not this time.

01:45On Trump's Inauguration Day, for instance, you almost got one euro for a dollar.

01:50Now you get 88 euro cents.

01:53That's a three-year low.

01:54Greater policy uncertainty, lower U.S. growth prospects, and an adjustment in the global demand

02:02for dollar assets are weighing down on the dollar.

02:06Risks to the global economy have increased and are firmly to the downside.

02:11Markets also plunged after Trump ramped up attacks on Fed Chairman Jerome Powell.

02:16Trump wants him to lower interest rates, saying it would boost the economy.

02:20But Powell argues that would do more harm than good.

02:22progress toward our goals over the past two years.

02:25Most Americans now have little confidence in President Trump's economic management,

02:29a Pew survey showing almost 6 in 10 disapprove of his tariff policies.

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