CNBC Daily Open: Trump tariffs will take effect ‘immediately’ but could be milder than thought

The dread of something bad happening is usually more severe than the event itself (such as heading back to work after a holiday).

This could well be the case for U.S. President Donald Trump’s wide-ranging tariff plan. Even though Trump initially described it as “reciprocal tariffs,” implying that the U.S. would match other countries’ import levies, the White House is reportedly considering a 20% charge on most goods and services. The figure sounds high, but is dramatically lower than, for instance, India’s tariff on auto imports — which can go up to 70%, according to Times of India.

Investors’ worries were slightly assuaged by the news, pushing up stocks. It is, however, too early to let down your guard. Concrete details of Trump’s plans are still unclear. Uncertainty is a bargaining chip for Trump; he could unleash a much more brutal tariff regime than expected.

Other times, experiencing something bad could be worse than dreading it (such as when your boss unveils a company-wide restructuring plan).

T-1 to tariffs
U.S. President Donald Trump’s “reciprocal tariffs” will be announced Wednesday and “be effective immediately,” press secretary Karoline Leavitt told reporters Tuesday. Details of Trump’s plans are still unclear, but The Washington Post reported Tuesday that the White House is considering tariffs of around 20% on most imports. Trump’s plan to reshape global trade comes at a time when the U.S. economy is looking increasingly shaky.

Volatile trading
U.S. markets mostly rose in a choppy trading session Tuesday. The S&P 500 closed 0.38% up, the Nasdaq Composite added 0.87%, but the Dow Jones Industrial Average fell a fractional 0.03%. Europe’s regional Stoxx 600 index gained 1.07%, receiving a leg up from cooler-than-expected euro zone inflation. Industrial group Thyssenkrupp rose 6% after Kepler Cheuvreux upgraded the stock to “buy” from “hold.”

Shares of CoreWeave jump
CoreWeave’s stock popped nearly 42% on Tuesday to close at $52.57, bringing the company to a nearly $25 billion market capitalization. The move follows a lackluster second trading day on the public markets, when shares dropped more than 10% and fell below its initial public offering price of $40. The artificial intelligence cloud company listed Friday in the biggest venture-backed tech IPO for a U.S. company since 2021.

European Union inflation cools
Inflation in the euro zone dipped to 2.2% in March on an annual basis, according to flash data from statistics agency Eurostat published Tuesday. That figure is in line with expectations and a touch below the 2.3% final reading in February. Core inflation, which excludes food, energy, alcohol and tobacco prices, edged lower to 2.4%. March’s soft reading boosts expectations of a rate cut by the European Central Bank later this month.

[PRO] ‘Avoid the tariff tantrum’
The U.S., as the world’s biggest economy, drives the finances of many international companies. Trump’s tariffs are expected to slam the brakes, at least temporarily, on revenue growth of those firms. But there are three stocks that can “avoid the tariff tantrum,” according to one investor.

Stablecoin issuer Circle files for IPO as public markets open to crypto

Circle, the company behind the USDC stablecoin, has filed for an initial public offering and plans to list on the New York Stock Exchange. JPMorgan Chase and Citigroup are serving as lead underwriters, and the company is reportedly aiming for a valuation of up to $5 billion. It will trade under ticker symbol CRCL.

It marks Circle’s second attempt at going public. A prior merger with a special purpose acquisition company collapsed in late 2022 amid regulatory challenges. The company’s push into public markets reflects a broader moment for the crypto industry, which is enjoying political favor under a more crypto-friendly U.S. administration.