Charlottesville, VA (CVILLE RIGHT NOW) – Markets tumbled worldwide following sweeping new tariff announcements from the Trump administration, with tech stocks suffering the most severe blow. Chief Economic Analyst Ed Burton returned for a second round of analysis this week, calling the situation “wrong-headed” and warning of significant long-term impacts. “The markets have had a tough couple of days… the stocks were down roughly between 4 and 5%,” Burton explained, noting that tech stocks dropped 6% and the dollar fell significantly as well. These sharp reactions come amid growing international retaliation, with countries like China and the European Union preparing countermeasures. 

Burton criticized the administration’s tariff strategy as both economically damaging and diplomatically confusing. Countries that don’t impose tariffs on American products, such as Vietnam and Israel, were slapped with high rates, while nations like Iran and Venezuela received smaller ones. “We treated allies worse in this policy than we treated our worst enemies,” he said, emphasizing the unpredictability and lack of strategic rationale behind the tariff allocations. He warned that international trade, currently 13% of global output, could be cut in half if the trend continues. 

Despite the chaos, Burton advised long-term investors not to panic. “If you haven’t reached the state of panic yet… just stay where you are,” he said, suggesting that times of emotional distress often present good buying opportunities. He also highlighted the broader misunderstanding of past trade policies, arguing that agreements like NAFTA and the opening of trade with China benefited American consumers and helped finance national debt. “We were the winners,” Burton asserted, adding that allies purchased trillions in U.S. treasuries, essentially subsidizing American consumption. 

Listen to the full conversation here: