'Liberation Day' has arrived — and Americans are already feeling the pain
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Good morning. Elon Musk funneled more than $12 million via his America PAC into swaying the pivotal Supreme Court race in Wisconsin. It wasn't enough. Susan Crawford, a liberal judge from Dane County, defeated Brad Schimel, a conservative judge from Waukesha County.
In today's big story, "Liberation Day" has arrived — and Americans are already feeling the pain.
What's on deck
Markets: One corner of the market could become recession-resistant, thanks to Gen Z and millennials.
Tech: Adobe is the latest tech giant to move away from its diversity hiring targets.
Business: The same badge-scan strategy used in Tesla layoffs hit government workers.
But first, the big day has arrived.
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The big story
BRENDAN SMIALOWSKI/ Getty Images
He warned there would be pain.
Today is US President Donald Trump's so-called "Liberation Day:" the day when he is set to unveil a range of sweeping tariffs on key trading partners.
Trump wrote back in February that the US would feel "some pain" with tariffs, but "it will all be worth the price that must be paid."
That pain is already here, BI's Ayelet Sheffey writes. Companies have warned of rising prices; markets have plunged; bad vibes are back.
Trade experts have said companies might absorb some of the cost of the planned tariffs, but Americans are likely to see higher prices on goods like groceries and cars. (Read all the tariffs Trump has threatened to impose here).
Trump has said that his plans would promote production in the US. In the meantime, the uncertainty is leaving markets, businesses, and Americans on edge.
As one retiree who voted for Trump told BI: "I hope he knows what he's doing, but I'm not so sure."
Options trades can offer a hint of how the stock market might react.
According to options data tracked by equity derivative strategists at JPMorgan, the S&P 500 is projected to move as much as 1.6% in response to the tariff announcement. The Nasdaq 100 and Rusell 2000 could move 1.8% and 2.1%, respectively.
The White House has sent contradicting policy signals, and it remains unclear how lenient or draconian the tariffs will be. The president told reporters on March 23 that he "may give a lot of countries a break."
"I don't change. But the word flexibility is an important word," Trump said.
All eyes will be on the announcement at 4 p.m. ET.
3 things in markets
Matt Fox/BI
1. Newsmax cements its meme stock status after its IPO debut on Monday. The right-wing cable news channel saw its stock surge as much as 2,190% in two days, catapulting its market value to over $20 billion and launching the tiny investment bank that handled its IPO onto the map. But investors should be wary, Peter Kafka writes.
2. Trump's trade war isn't the only thing that's derailed the stock market. While anticipated tariffs have rattled the markets in recent weeks, weak consumer confidence and other factors have soured the mood among investors heading into Q2.
3. Gen Z and millennials are making the wellness industry recession-resistant. Young Americans spend more on health and wellness than other generations, Bank of America data shows — and that could protect the industry during a recession. The bank sees these three wellness stocks benefiting.
3 things in tech
Courtesy of Gloria Chen
1. Another DEI program bites the dust. In a company all-hands, Adobe's chief people officer said the company is ending diversity hiring targets, according to a recording of the meeting obtained by BI. Adobe joins the likes of Meta and Google in slashing DEI efforts.
2. The traditional coding interview is at a crossroads. Many software engineers are increasingly expected to use AI on the job. However, as AI advances, cheating on coding tests is becoming more seamless — and it's raising new ethical questions for hiring managers.
3. Meta just lost a key AI leader. Head of AI research Joelle Pineau is leaving the company at the end of May. Her departure comes as Meta seeks to step up competition with its rivals, pouring as much as $65 billion into the space.
3 things in business
Photo Spirit/Shutterstock
1. Trump's latest Ivy League target: Princeton. The Trump administration froze federal research grants at the university, for reasons Princeton's president said were "not yet clear." It follows similar actions the administration has taken against Harvard and Columbia over antisemitism allegations.
2. Elon Musk's firing playbook hits another federal agency. Employees at the Department of Health and Human Services showed up to work on Tuesday to try their luck at the door. If their badge worked, it meant they still had their job. If not, they were axed. HHS workers told BI there were long lines and tears as they learned their fate.
3. Think your way to a dream home. When Daryl Fairweather moved to a new city, she wanted to avoid making rash decisions in her homebuying process. She used her expertise in behavioral economics to dodge common — and costly — mistakes.
In other news
- Tesla sales: Analyst estimates the impact of Elon Musk's DOGE antics.
- 'Top Gun' star Val Kilmer dead at 65.
- Attorney General Pam Bondi wants the death penalty for Luigi Mangione over alleged 'cold-blooded assassination' of UnitedHealthcare CEO.
- Microsoft is a clear winner from ChatGPT's super-viral Ghibli images, analysts say.
- Millennium and Citadel lose money for the second straight month in a turbulent March while smaller funds post returns.
- OpenAI has $20 billion to win or lose in its race to become a for-profit.
- Charlie Javice must wear an ankle monitor despite her budding Pilates career, judge rules.
- 'Ask Grok' was supposed to make X better. Turns out, it's just another tool for dunking on someone.
- Point72's CTO takes us inside his plans for tech expansion, from AI to India.
- Jensen Huang and Michael Dell are out of the $100 billion club after a terrible quarter for stocks.
- How marketers are trying to make themselves recession-proof.
- I spent 15 minutes flirting with Tinder's new chatbot so you don't have to. Here's how it went.
What's happening today
Tesla reports Q1 vehicle delivery and production figures.
The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave). Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Meghan Morris, deputy bureau chief, in Singapore. Elizabeth Casolo, fellow, in Chicago.
