Trump addresses stock market losses, China trade deficit

The president spoke with reporters aboard Air Force One on Sunday.

ByAlexandra Hutzler, Ivan Pereira, William Mansell, and Max Zahn
Last Updated: April 7, 2025, 2:30 AM EDT

The fallout continues after President Donald Trump's unveiling of severe tariffs against virtually all U.S. trading partners.

On Sunday, ABC's "This Week" anchor George Stephanopoulos pressed White House National Economic Council Director Kevin Hassett about Trump reposting a video that said he was tanking the markets to force the Fed to lower interest rates. Hassett said Trump was entitled to his opinion, but denied that his tariff policy was intended to put pressure on the Fed to lower rates.

Trading on Thursday and Friday marked the worst days for U.S. stocks since 2020.

Key Headlines

Here's how the news is developing.
Apr 04, 2025, 1:41 PM EDT

Schumer calls on Republicans to join tariff limit bill

Senate Minority Leader Chuck Schumer spoke with reporters on the Hill Friday and called on more Republicans to join a bipartisan bill from Sens. Maria Cantwell and Chuck Grassley to limit President Donald Trump's ability to issue future tariffs.

He warned tariffs will "hurt the whole economy."

"The business community is totally nervous about this. What makes it cause a recession? Businesspeople like certainty, and when Trump is all over the lot, issues new things every day, and it's so erratic, and now we have China retaliating," Schumer said.

PHOTO: Chuck Schumer
Senate Minority Leader Chuck Schumer speaks about the Republican-backed budget plan during a news conference at the Capitol, in Washington, April 3, 2025.
J. Scott Applewhite/AP

-ABC News' Jay O'Brien

Apr 04, 2025, 1:41 PM EDT

London's FTSE 100 index sees biggest daily drop since COVID

London’s FTSE 100 index has suffered its biggest daily drop since the start of the COVID-19 pandemic. The index closed down 419.76 points, or 4.95%, at 8,054.98

Apr 04, 2025, 12:25 PM EDT

Nintendo delays preorder for Switch 2 because of tariffs

Days after announcing the Switch 2, Nintendo said Friday it's delaying preorders for the new console due to President Donald Trump's tariffs, the company announced.

“Pre-orders for Nintendo Switch 2 in the U.S. will not start April 9, 2025 in order to assess the potential impact of tariffs and evolving market conditions. Nintendo will update timing at a later date. The launch date of June 5, 2025 is unchanged.”

A guest plays Mariokart World with the new Nintendo Switch 2 video-game console system of Japanese video-game company Nintendo during the worldwide presentation at the Grand Palais in Paris on April 2, 2025.
Dimitar Dilkoff/AFP via Getty Images

The Switch 2 announcement on April 2, long planned, fell in the crosshairs of Trump’s trade war.

Apr 04, 2025, 11:49 AM EDT

Powell warns tariffs will increase inflation, slow economic growth

Fed Chair Jerome Powell talked about the current economic outlook at the Society for Advancing Business Editing and Writing Annual Conference Friday and gave his insight on the tariff situation.

Powell said that tariffs will likely raise inflation and slow down growth in the coming quarters.

"The size and duration of these effects remain uncertain. While tariffs are highly likely to generate at least a temporary rise in inflation, it is also possible that the effects could be more persistent," he said.

Federal Reserve Chair Jerome Powell speaks on the economy during the 2025 annual conference of the Society for Advancing Business Editing and Writing, in Arlington, Virginia, on April 4, 2025.
Brendan Smialowski/AFP via Getty Images

Powell added the U.S. is "well positioned to wait for greater clarity before considering any adjustments to our policy stance. It is too soon to say what will be the appropriate path for monetary policy."

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