Stocks kicked off the week in rally mode, building on post-Fed optimism—until it all came crashing down. Midweek, President Trump abruptly announced a 25% tariff on imported autos and parts beginning April 3, reversing earlier signals of delay. The S&P 500 quickly gave up its gains, sliding more than 2% by Friday as investors reassessed earnings potential across the auto, tech, and consumer sectors.

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What was shaping up to be a soft landing week morphed into a panic-driven retreat. Trump’s tariff flip-flop introduced new inflation risks and reignited fears of a trade war with key allies. Foreign automakers like Toyota and BMW found themselves directly in the crosshairs. Dealerships scrambled to offload inventory ahead of the deadline, while news of looming retaliation from Europe and Canada only deepened the sense of unpredictability. Trump’s so-called “Liberation Day” is fast becoming a macro inflection point.