{"id":72481,"date":"2025-10-11T18:57:06","date_gmt":"2025-10-11T18:57:06","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/72481\/"},"modified":"2025-10-11T18:57:06","modified_gmt":"2025-10-11T18:57:06","slug":"new-china-tariffs-announced-during-government-shutdown-and-ai-valuation-debate-are-a-perfect-storm-coming-together-top-economist-says","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/72481\/","title":{"rendered":"New China tariffs announced during government shutdown and AI valuation debate are a \u2018perfect storm coming together,\u2019 top economist says"},"content":{"rendered":"

President Donald Trump\u2019s additional 100% tariff<\/a> on China erased $2 trillion from the stock market on Friday and possibly couldn\u2019t have come at a worse time.<\/p>\n

A potentially renewed trade war risks a resurgence of uncertainty in the market, Apollo Global Management<\/a> chief economist Torsten Slok said<\/a> Saturday on Fox<\/a> Business, all while fears of an AI bubble<\/a> raise doubts about stock valuations and the federal government shutdown looks like it may last throughout October.<\/p>\n

\u201cThis was almost the perfect storm coming together,\u201d he warned.<\/p>\n

Meanwhile, White House budget office said Friday that\u00a0mass firings of federal workers<\/a> have started and could total more than 4,000.<\/p>\n

Slok pointed out that \u201cLiberation Day,\u201d when investors were shocked in April by Trump\u2019s aggressive tariffs, was just over six months ago, and markets have been getting more used to the idea that \u201cmaybe the worst was behind us.\u201d\u00a0<\/p>\n

The Liberation Day announcement wiped out over $6.6 trillion<\/a> in value from the U.S. stock market within two days. The S&P 500 experienced its largest two-day loss on record.<\/p>\n

Now, Trump\u2019s Friday announcement<\/a>, which includes plans<\/a> to increase tariffs on China to 130% and impose U.S. software export controls next month, comes as a \u201csurprise,\u201d Slok said on Saturday. The tariff hike threat comes after months of seemingly reduced trade tensions between the countries.<\/p>\n

Following Trump\u2019s announcement, the S&P 500 fell 2.7%, its worst day since April 10, the Dow<\/a> Jones Industrial Average dropped 878 points, about 1.9%, and the Nasdaq<\/a> sank 3.6%.<\/p>\n

Tariffs take time for companies to incorporate them, Slok said, but the effects of another wave of tariffs will be on the horizon.<\/p>\n

\u201cYou should expect the same, namely, higher inflation and also downward pressure on GDP,\u201d Slok said.<\/p>\n

Fortune Global Forum returns Oct. 26\u201327, 2025 in Riyadh. CEOs and global leaders will gather for a dynamic, invitation-only event shaping the future of business. Apply for an invitation.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"President Donald Trump\u2019s additional 100% tariff on China erased $2 trillion from the stock market on Friday and…\n","protected":false},"author":2,"featured_media":72482,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[365,363,364,138,607,65,25833,12410,1943,321,220,10992,111,139,69,4247,781,7677,7678,370,45255,145],"class_list":{"0":"post-72481","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-artificial-intelligence","8":"tag-ai","9":"tag-artificial-intelligence","10":"tag-artificialintelligence","11":"tag-business","12":"tag-china","13":"tag-donald-trump","14":"tag-economic-growth","15":"tag-gdp","16":"tag-inflation","17":"tag-investors","18":"tag-markets","19":"tag-nasdaq","20":"tag-new-zealand","21":"tag-newzealand","22":"tag-nz","23":"tag-sp-500","24":"tag-stock","25":"tag-tariffs","26":"tag-tariffs-and-trade","27":"tag-tech","28":"tag-tech-stocks","29":"tag-technology"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/72481","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/comments?post=72481"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/posts\/72481\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media\/72482"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/media?parent=72481"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/categories?post=72481"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/nz\/wp-json\/wp\/v2\/tags?post=72481"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}