“The advice that sounds the best in the short run is always the most dangerous in the long run.” — Jason Zweig

Good Morning! Tesla posted its steepest sales decline ever; a 13% drop in sales and weakest quarter since 2022 thanks to Elon Musk-related backlash and competition in the EV market. But investors found a silver lining and are betting Musk could step away from his DOGE role over the next few weeks.

Hedge funds are nursing losses after a brutal March market sell-off. BCG is ramping up hiring and will bring in 1,000 more consultants to help with the AI boom. Goldman Sachs will open private equity opportunities to wealthy individuals, and Amazon submitted a bit for TikTok.

Plus: Ben & Jerry's asks to be 'set free,' Grubhub is reviving Seamless, and the MTA unveiled its first new NYC subway map in 45 years.

Feeling the weight of compounding debt? See what the experts are saying is the best credit hack that everyone should know.

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Liberated from Portfolio Gains

The White House dubbed yesterday "Liberation Day," but for investors, it felt more like their portfolios were liberated of gains. Instead of fireworks and confetti, markets got slammed with the most aggressive protectionist policy rollout since the 1930s. In a Rose Garden address, Trump declared a national economic emergency and revealed sweeping new tariffs that left Wall Street and Main Street in utter disbelief.

Effective April 5, the U.S. will impose a universal 10% tariff on all imports. Beyond this baseline, approximately 60 nations will face steeper penalties under the "kinder reciprocal tariffs" framework, which aims to mirror the tariffs these countries impose on U.S. exports.

For instance, China will be subjected to an additional 34% tariff, bringing its total to 54% when combined with pre-existing duties. Similarly, the European Union will face a 20% tariff, Japan 24%, Vietnam 46%, and Cambodia tops the list at 49%. These reciprocal tariffs are scheduled to take effect on April 9.

The administration insists this strategy will reset the global trade scoreboard, making up for decades of asymmetric tariffs and weak enforcement. Trump even floated the idea that tariffs could replace income taxes, calling this our “economic declaration of independence.”

But the markets had a very different declaration: sell first, ask questions later. The S&P 500 dropped 3% after hours, the Nasdaq fell more than 4%, and stocks tied to global supply chains (like Apple and Nike) got crushed. Meanwhile, countries spared from the steep tariffs, like Mexico, saw their currencies rally.

The macroeconomic implications are serious. The average effective U.S. tariff rate could rise from 2.5% to as high as 25%, higher than during the Smoot-Hawley era, which deepened the Great Depression. Inflation could jump by more than 2%, and the average American household might see a $3,400–$4,200 hit to their annual purchasing power.

Takeaway: While a flat 10% tariff might have been manageable, imposing tariffs up to 49% on some countries introduces significant volatility. Companies still haven’t fully healed from COVID-era supply chain chaos, and now they’re being thrown into a fresh trade war. Retaliation is expected. Volatility is guaranteed. And if you thought geopolitics was already a mess, buckle up.

_{PRESENTED BY FINANCEBUZZ}

Manage Your Credit Card Debt With 0% APR

Carrying a credit card balance? A 0% intro APR credit card—no interest until nearly 2027—could give you breathing room to pay it down without added interest.

FinanceBuzz’s credit card experts identified top options designed to help with debt repayment.

You can explore the list and see if one fits your financial goals.

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Top Reads

• Tesla suffers worst quarter since 2022 as deliveries tumble (CNBC)

• Citadel, Millennium hedge funds have dismal quarter after stocks tank in March (NYP)

• Goldman is opening private equity deals to rich individuals (BB)

• Consulting giant BCG hires 1,000 staffers for AI boom (BB)

• MTA unveils first new NYC subway map for first time in 45 years (ABC) 

• Grubhub revives Seamless brand in NYC (BB)

• Tariffs will squeeze manufacturers and may not lead to more jobs (Axios)

• Deutsche Bank fined $27 million for greenwashing (WSJ)

• Manhattan’s luxury real estate market sees best quarter in 6 years (CNBC)

• Private jobs added 155,000 jobs in March, more than expected (CNBC)

• Consulting giants offer billions in cuts to federal contracts but it might not be enough (WSJ)

• Amazon submits bid for TikTok as ban deadline nears (CNBC)

• Ben & Jerry's asks to be 'set free' (WSJ)

• The impact of private equity's expansion into health care (YouTube | 11 minutes)

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Markets Rundown

Tariffs Slam Markets, but Jobs and Manufacturing Hold Steady

Trump’s new reciprocal tariffs hit after Wednesday’s close, effective April 9 with a 10% baseline starting April 5—34% on China, 24% on the EU, but USMCA-compliant goods from Canada and Mexico are exempt.

Tariffs exclude steel, aluminum, autos, and parts, already under separate orders.

The 10-year Treasury yield fell to 4.13%, down 5 basis points, as investors fled to bonds.

Europe tanked, Asia was mixed, the U.S. dollar weakened, and WTI oil rose—Canadian crude imports spiked pre-tariff but may not last.

ADP jobs data showed 155,000 private-sector jobs added in March, beating the 122,000 expected.

Professional services and financial activities added 57,000 each, manufacturing gained 21,000, and February’s numbers were revised up by 7,000.

Pay rose 4.6% year-over-year.

Friday’s nonfarm payrolls will include government jobs, but this signals a solid labor market fueling spending.

Manufacturing grew, with new orders up 0.6% in February, topping the 0.5% forecast.

Shipments rose for the fourth straight month, and durable goods orders increased 0.97%, just above the 0.9% expected.

This hints at a slow manufacturing recovery, supporting jobs and growth, but tariffs could still throw a wrench in the gears.

Movers & Shakers

• (+) Petco ($WOOF) +13% after the pet retailer’s CEO bought more stock.

• (+) Tesla ($TSLA) +5% because Elon Musk is rumored to leave DOGE in the coming weeks.

• (–) Newsmax ($NMAX) -77% after the news channel’s rally loses steam.

Private Dealmaking

• Hahn & Co. acquired SK Specialty for $1.77 billion 

• ReliaQuest, a security ops startup, raised $500 million

• Atsena Therapeutics, a gene therapy startup, raised $150 million 

• Cyberhaven, a data security startup, raised $100 million

• AttoTude, a data center connection startup, raised $50 million

• Adaptive Security, a cybersecurity startup, raised $43 million

For more PE, VC & M&A deals, subscribe to our Buysiders newsletter.

_{BOOK OF THE DAY}

Ages of American Capitalism

In this ambitious single-volume history of the United States, economic historian Jonathan Levy reveals how capitalism in America has evolved through four distinct ages and how the country’s economic evolution is inseparable from the nature of American life itself.

The Age of Commerce spans the colonial era through the outbreak of the Civil War, and the Age of Capital traces the lasting impact of the industrial revolution.

The volatility of the Age of Capital ultimately led to the Great Depression, which sparked the Age of Control, during which the government took on a more active role in the economy.

In the Age of Chaos, deregulation and the growth of the finance industry created a booming economy for some but also striking inequalities and a lack of oversight that led directly to the crash of 2008.

“A monumental achievement, sure to become a classic.”

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White House Announces Reciprocal Tariffs

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Speaking of Reciprocal Tariffs…

With reciprocal tariffs tanking the markets, is the U.S. on the verge of recession? Recent market volatility, driven by President Trump's tariff policies and federal layoffs, has heightened these concerns, and the market has entered correction territory.

Goldman Sachs has lowered its GDP projection for the full year by half a point, predicting GDP will rise just 1%, and upped its chances of a recession from its previous 20% estimate to 35%.

For those looking to navigate these uncertain times, Kalshi offers a unique platform to engage with recession forecasts.

Currently traders are forecasting a 54% chance of a recession this year. What do you think?

_{DAILY ACUMEN}

First-time Manager

Jumping from solo contributor to team leader is brutal—20% of first-time managers tank, per their teams, and 26% feel unprepared, with 60% getting zero training.

Three traps trip them up: doing it all themselves, scared to delegate; micromanaging, which kills trust and morale; and hogging the spotlight, making themselves “irreplaceable”—a promotion killer.

Instead, bring your team to the big meetings—show they’re ready to step up, and you’ll climb faster.

Be a values-based leader: anchor in self-reflection (know yourself to lead others), seek balanced perspectives (you don’t know everything), and motivate by empowering your team to spark ideas.

Shift from “it’s about me” to “it’s about them”—develop others, and you’ll shine.

Senior leaders must mentor these newbies to build a real leadership pipeline, or the whole org suffers.

Delegate, trust, and share the stage, or you’ll be stuck forever.

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Short Squeez Picks

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Memes of the Day