New tariffs announced in China during government shutdown and discussion of AI valuation represent ‘perfect storm coming together’, chief economist says

A potential renewed trade war threatens to renew market uncertainty. Apollo Global Management Chief Economist Torsten Slok He said Saturday Fox Business, all with fears of You have a bubble It raises doubts about stock valuations and it looks like the federal government shutdown may last throughout October.

“This was almost the perfect storm,” he warned.

Meanwhile, the White House Budget Office said so on Friday – Mass dismissal of federal workers started and can total more than 4,000.

Slouk noted that “Liberation Day,” when investors were shocked in April by Trump’s aggressive tariffs, was just over six months ago, and that markets had become more accustomed to the idea that “maybe the worst is behind us.”

The proclamation of Liberation Day has ended $6.6 trillion in value from the US stock market within two days. The S&P 500 saw its biggest loss ever in two days.

And now Trump Friday advertisementwhich includes Plans Slouk said on Saturday that the increase in tariffs on China to 130% and the imposition of export controls on US software next month comes as a “surprise.” The threat to raise customs duties comes months after trade tensions between the two countries appeared to decrease.

After Trump’s announcement, the S&P 500 fell 2.7%, its worst day since April 10. Dao The Jones Industrial Average fell 878 points, or 1.9%. Nasdaq Sunk 3.6%.

Slouk said tariffs take time for companies to integrate, but the effects of another wave of tariffs will be on the horizon.

“You should expect the same thing, i.e. higher inflation as well as downward pressure on GDP,” Slouk said.