CNBC Business News Update - Market Close: Stocks Nosedive, Worst Day For S&P 500 And Nasdaq In Five Years On Trump Tariffs, Investors Wait For Jobs Report Friday Morning 4/3/25

Episode Date: April 3, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica Edinger, CNBC. Wall Street opens Friday morning after President Trump's tariff onslaught wiped out trillions of dollars of market value. The Dow cratered 1,600 points. The S&P 500 index and the NASDAQ had their worst drops in about five years. The Dow down 4 percent. The S&P down 4.8 percent. The NASDAQ down almost 6%.

The president's lapping tariffs on goods coming into the U.S. from more than 60 countries, with the increased costs forecast to hit U.S. consumers hard. Everyone's going to feel the costs. Every consumer is going to see prices go up. And we're already, as you know, in a pre-inflationary stage right now. Former U.S. Trade Representative Michael Froman on CNBC. Commerce Secretary Howard Lutnick told CNBC the tariffs shouldn't have shocked the market.

Stop saying that we can't sell our corn to India. Stop saying that we can't sell our beef anywhere. Just stop treating us so poorly if we are the great consumer of the earth. We buy everybody's goods. You just have to treat us fairly, and that is the problem. But CNBC senior economics reporter Steve Leesman says business leaders are in shock. The market is not whispering.

It is absolutely screaming right now at the unbelievable situation where you have the most business oriented cabinet of all time, apparently not caring about the impact on the market. Some investors are hopeful that tariffs could be negotiated lower or away. Late Thursday, the president said he might be open to that. The president's gaggling on Air Force One with reporters. Trump says that he is open to tariff negotiations if other countries offer something phenomenal. But obviously a big shift there saying that this is not a

negotiation. So far they've been saying that they are not open to deals. The president is saying he would be open to negotiations, but again, only if countries offer something phenomenal CNBC's Megan Kasella from couches to coffee mugs to clothes. If the tariffs hold at any level, anything made overseas will cost you more. Jay Foreman, he's the CEO of Basic Fun, he makes Tonka trucks, Care Bears and more. He sums up what I'm hearing really pretty well. He says, quote, he's in shock.

These levels are completely beyond imagination. There is no way that the cost of these tariffs will not be passed along almost immediately. And for his products, there is no way that we can produce our toy products in the U.S. in the near term, mid term, or frankly, ever. CNBC's Courtney Reagan. And as far as new cars go, get out there now and join the pre-tariff car buying fight or save up to pay more later. CNBC's Phil LeBeau has the latest on the tariffs in that industry.

Many people are saying, well, just bring the plants back from Canada and Mexico. Not that simple in large part because it's much more expensive to manufacture in the United States, $70 per hour, hourly labor all in with benefits to manufacture here in the U.S. versus 40 in Canada, $6 to manufacture in Mexico. Ford, it's going to start offering employee pricing. There's a surge of people who are going out to the dealerships.

Ford believes that offering employee pricing is a good way to say to people, if you're going to buy, come on into a Ford dealership. Auto sales probably going to be a big month in April. Look out when it comes to May, because that's when you start to see the full impact of the tariffs. On Friday's Watch List, it is a Jobs Friday. The March employment report will be out from the Labor Department. Jessica Ettinger, CNBC. impact of the tariffs on It is a jobs friday. The report will be out from t Jessica Eddinger CNBC. Am

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