BREAKING: Stock Markets Crater as Trade War Fears are Confirmed

The stock market has cratered because of the trade wars this afternoon, Trump is planning on fining undocumented migrants $998 per day, China is fighting back, so is Canada, and recession fears rise

I'm currently on the road and unable to record a video update, but the news doesn’t take a break—so I wanted to make sure you still got a written update, especially after such a busy news day. If you'd like to support my work, consider becoming a paid subscriber. I’m able to do this full-time thanks to your support.

With that, let’s get to the news:

• The markets cratered this afternoon. The S&P 500 ended the day down 1.6%, while the Nasdaq 100 dropped 2%. If the S&P 500 falls over 4% again tomorrow, it would mark the third consecutive day of such a steep drop—something that hasn’t happened since the Great Depression. Over the past four trading sessions, the S&P 500 has shed a total of 13%.

• The White House has announced that 104% tariffs on Chinese goods will take effect tonight.

• China has stated that it will "fight to the end" if the U.S. continues to push forward with tariffs.

• Canada has announced that its tariffs will take effect tonight. Prime Minister Mark Carney stated that starting at 12:01 a.m. EDT, Canada will impose 25% tariffs on all U.S. vehicles that don't meet CUSMA requirements, as well as 25% tariffs on parts in CUSMA-compliant vehicles that aren't sourced from Canada or Mexico. He added that President Trump sparked this trade crisis — and Canada is responding with determination and strength.

• Senator Rand Paul criticized Trump’s tariff plan on CNBC, saying he "can’t support a fallacy that is going to make us lose our wealth." He added, "I have a retirement account, too. I want it to stay intact, and I think these tariffs are going to wipe it out."

• The North Carolina Supreme Court has temporarily halted a lower court's order to recount and verify over 65,000 ballots from the 2024 state Supreme Court race. Both a full machine recount and a partial hand recount have already confirmed Democrat Allison Riggs is ahead of her Republican challenger by 734 votes.

• Goldman Sachs has increased its estimate of the likelihood of a U.S. recession within the next 12 months to 45%.

• According to documents reviewed by Reuters, the Trump administration plans to fine migrants under deportation orders up to $998 per day if they don't leave the U.S., and could seize their property if the fines go unpaid.

• Trump is reportedly considering using the U.S. military to carry out drone strikes against cartels inside Mexico.

• Trump’s Department of Homeland Security has ordered migrants who were previously allowed to stay in the U.S. under the Biden-era CBP One app program to leave the country “immediately.” Since January 2023, over 900,000 people have entered the U.S. through that app.

• The American Library Association has sued the Trump administration over what it calls the dismantling of the Institute of Museum and Library Services. The group is calling for the agency to be reinstated.

• The Supreme Court has temporarily blocked a lower court’s order that would have required the Trump administration to rehire around 16,000 probationary employees who were recently dismissed.

• Sources say that last week, Trump told Republican senators he's open to the idea of increasing taxes on the wealthiest Americans — according to Semafor.

• The White House says Trump believes the U.S. has the ability to manufacture iPhones domestically.

• The U.S. is aware of reports that Ukraine has captured two Chinese nationals who were allegedly fighting on Russia’s side, according to the State Department.

See you in the morning.

— Aaron