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Investing.com - A raft of potential tariff announcements on April 2 from U.S. President Donald Trump are likely to loom over investor sentiment this week, with the levies possibly set to overhaul America’s global trading stance. Traders will also be able to parse through key economic data this week, including crucial nonfarm payrolls figures, with concerns rising over the broader impact of Trump’s tariffs. Elsewhere, quarterly deliveries from Tesla (NASDAQ:TSLA) are expected to be released, as the electric carmaker grapples with a backlash to CEO Elon Musk’s close ties to Trump.
1. Trump’s "liberation day" tariff announcement
Markets are gearing up for a much-anticipated event on April 2, when Trump is expected to unveil a new batch of tariffs that could upend longstanding international trading relationships.
Analysts have suggested that the day is shaping up to be a steep escalation of Trump’s push to rebalance the U.S.’s trading stance since he returned the White House for a second term earlier this year. Trump, who has said the pronouncements will be part of what he has called "liberation day," is seen imposing fresh duties on both friends and adversaries alike, including levies matching foreign tariff barriers.
His cabinet has said a group of at least 15 countries may be targeted, although a Wall Street Journal report said a greater number of countries was being considered. The report also said that Trump was considering a flat 20% tariff on all countries the U.S. has a trade deficit with.
Last week, Trump revealed new automotive tariffs, making good on a pledge to penalize foreign importers of cars and light trucks into the U.S. Strategists have flagged that the move could raise domestic car prices, although Trump said over the weekend that he "couldn’t care less" if foreign automakers hike costs for consumers.
Trump has argued that his tariffs are necessary to correct U.S. trade imbalances, collect revenue to offset proposed tax cuts, and help bring manufacturing back into the country.
2. Trump hits out at Putin
Elsewhere, Trump said he was "pissed off" at Russian President Vladimir Putin, telling NBC News that he was angry Putin criticized the credibility of Ukrainian counterpart Volodymyr Zelenskiy.
Trump, who has been pushing to forge a deal to end the war in Ukraine, added that he would impose secondary tariffs of 25% to 50% on buyers of Russian oil should he believe the Kremlin was hampering his efforts.
It marked a change in tone from Trump after weeks of praising Putin and publicly criticizing Zelenskiy. Trump’s approach to the negotiations has increased concerns among European leaders over a possible rapprochement between Washington and Moscow that could leave U.S. commitments to backstopping the defense of the region in doubt.
Trump noted that while the Kremlin was aware of his displeasure with Putin, he maintained a "very good relationship" with the Russian leader. His anger would "dissipate quickly" if Putin "does the right thing," Trump added.
3. Payrolls data highlights economic calendar
On the economic calendar, investors will have the chance to parse through a host of data points this week, including the all-important jobs report for March.
The U.S. economy is tipped to have added 139,000 roles in March, down from 151,000 in the previous month, while the unemployment rate is seen equaling February’s mark of 4.1%.
Prior to the release of the nonfarm payrolls figures on Friday, measures of private hiring and job openings will also be published, along with separate numbers tracking manufacturing activity.
The main stock averages on Wall Street sank to end the prior week, with fears growing over the impact of Trump’s levies on growth and inflationary pressures. U.S. consumer spending also bounced by less than anticipated in February and a metric of underlying prices rose by the most in 13 months, data showed on Friday, while a survey of 12-month consumer inflation expectations spiked to the highest point in almost 2-1/2 years in March.
"The threat of tariffs is already prompting concerns about higher prices that could squeeze consumer spending power. Additionally, households are worrying about the impact of the Department of Government Efficiency’s spending cuts on jobs and entitlements," analysts at ING said in a note to clients.
4. Tesla deliveries ahead
Tesla is expected to unveil first-quarter deliveries data this week, with analysts and investors bracing for a potential drop in the proxy for the electric vehicle maker’s sales.
The numbers, which are due out on April 2, are projected to show a decline in the figure versus the year-ago period, as the company contends with a backlash to CEO Elon Musk’s political activities that have led to protests at showrooms. With the backing of Trump, Musk has led a controversial push to downsize the federal government through the so-called "Department of Government Efficiency," or DOGE.
Strategists have also flagged that some of the softness in deliveries in the first three months of 2025 could stem from intensifying competition and customers waiting for an impending update to Tesla’s best-selling Model Y.
Deliveries are anticipated to fall by 7% against the same period last year to 335,000 to 360,000, according to Dan Ives, managing director at Wedbush Securities.
5. First key political contests of Trump 2.0
Two political contests this week are anticipated to provide an early litmus test for Trump’s second term.
In Wisconsin, a technically nonpartisan race for election to the state’s Supreme Court has become the most expensive judicial race in U.S. history, due in large part to efforts by Musk to help elect a conservative candidate.
Musk on Sunday gave million-dollar checks to two voters and promised smaller payments to those to support the candidate, adding that Republicans were "in serious danger" of losing the April 1 election that pits conservative Brad Schimel against liberal Susan Crawford.
According to New York University’s Brennan Center for Justice, groups linked with Musk have spent at least $17.5 million to back Schimel, Reuters has reported.
Meanwhile, focus will also be on a pair of special elections in Florida to fill seats vacated by House of Representatives members who were tapped for posts in the Trump administration. Trump has hinted at some unease around the GOP’s prospects for the votes, saying on Friday that this was why his team recently chose to pull the nomination of New York representative Elise Stefanik for United Nations ambassador.