Morning Brew Daily
Trump Announces 90-Day Tariff Pause & Drones Deliver Your Packages?
Thu, 10 Apr 2025
Episode 558: Neal and Toby recap the markets’ reactions to Trump’s pause on sweeping tariffs for most countries…except for China. Then, Treasury yields are usually a safe haven when the economy is in the dumps…maybe that isn’t the case anymore. Also, this drone startup wants to beat Amazon to your doorstep. Meanwhile, Neal shares his favorite numbers from Japan’s train feat, microplastics, and The Great Gatsby. Finally, what makes the Masters golf tournament quite unique. 00:00 - Uber’s 2025 Lost & Found Index 3:00 - Trump pauses on tariffs 8:00 - Bond market not looking good 12:00 - Look to the sky for drone packages! 18:00 - Japan’s 3D train station 20:00 - Plastics in our brain!? 22:00 - ‘The Great Gatsby’ turns 100 24:30 - The Masters is here Subscribe to Morning Brew Daily for more of the news you need to start your day. Share the show with a friend, and leave us a review on your favorite podcast app. Checkout TaxAct for more! Listen to Morning Brew Daily Here: https://link.chtbl.com/MBD Watch Morning Brew Daily Here: https://www.youtube.com/@MorningBrewDailyShow Learn more about your ad choices. Visit megaphone.fm/adchoices
Chapter 1: What does the Uber Lost & Found Index reveal?
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Good morning, Brew Daily Show. I'm Neil Freiman. And I'm Toby Howell. Today, Trump paused most tariffs and the S&P 500 had its best day since 2008. Hope you bought the dip.
Then what the heck is going on in the bond market that has investors so spooked? It's Thursday, April 10th. Let's ride.
Who among us hasn't left something valuable in an Uber? Maybe it was your phone or AirPods that you had to scramble to recover. Others leave a lot weirder things behind. Uber just released its lost and found index for 2025, which lists the most unique items riders left in cars. They include a mannequin head with human hair, a chainsaw, a live pet turtle.
10 live lobsters, a Viking drinking horn, a taxidermied rabbit, and someone's divorce papers. Toby, kind of wish I shared a ride with a person drinking from the Viking horn.
I love this report every single year. It also goes through the most forgetful cities. Surprise, surprise. New York, New York is number one. Also, they kind of note some trends that emerge over the year. One big one was that a lot of people were leaving Nintendo Switches behind. They recorded over 70 instances of that. So maybe Nintendo was looking at those figures and saying,
We got to update the console because everyone's just leaving them behind. And then also, here's one for you astrology lovers out there. During Mercury's April 2024 retrograde, lost items did spike. Over 7,000 riders lost items on April 5th alone. So if you're an astrology believer, look no further than Uber's lost and found report to justify your bullies. Now a word from our sponsor, TaxAct.
Neil, can I ask a dumb question? You've never let that stop you before. Fire away. Am I allowed to do my taxes at night?
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Chapter 2: Why did Trump pause tariffs for 90 days?
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That actually sounds kind of comforting. Do they make chamomile tea, too? That is two strikes, Toby.
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President Trump checked beneath his couch cushions, found his universal tariff remote, and hit the pause button yesterday, halting his disruptive trade agenda and giving a shaking global economy a brief moment of respite. Just afternoon, the president announced that reciprocal tariffs on countries who hadn't retaliated against his levies would be paused for 90 days to allow for negotiations.
Who did that apply to? Literally every country except China. Under the updated trade plan, tariffs on global imports were lowered to just 10% across the board, while levies on China were raised to 125% effective immediately due to what Trump called a lack of respect that China has shown to the world's markets. Earlier in the day, Beijing said it was hiking its own retaliatory tariffs on the U.S.
to 84% from 34%. Despite the still frosty relationship with China, all three major indexes exploded higher after the announcement. The S&P 500 leapt by 9% to notch its ninth best day in history. Apple traded like a meme stock and had its best day since 1998, while the Magnificent 7 added over a trillion dollars in market cap.
Commerce Secretary Howard Lutnick posted a tweet that explained he sat next to Trump as he posted one of the most extraordinary truth posts of his presidency. And judging from how the market reacted, Neil, he may have been right.
The market did go ballistic. I mean, 24 hours ago, we were sitting here saying that retailers big shift away from China for their production to Vietnam. Malaysia had backfired spectacularly because now these countries were being hit with tariffs of up to 46 percent in the case of Vietnam.
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Chapter 3: How did the bond market influence Trump's decision?
A few hours later, its stock rises up 23 percent because there is a little more clarity, not a ton of clarity at all, but a little more clarity about the future direction of these tariffs.
I do just want to dive deeper into these numbers too. The NASDAQ closed up more than 12%. That was its second best day ever in history. Look at these magnificent seven numbers. Tesla up 22%. Nvidia up 18%. Apple up 15%. Meta 14%. All the way down to Alphabet up 10%. You really just saw these massive, massive companies just rocket upwards. And we're talking history here.
So I said the second largest company. Second biggest jump in history. The top three spots belong to one January 3rd, 2001, where the Nasdaq jumped 14%. And then October 13th, 2008, the Nasdaq jumped 11%. That's the one in the three spots. In both of those other instances, though, the Nasdaq ended up making a new low, sometimes shortly afterwards.
So that is to say that this is not necessarily saying that we're... so back, mainly because there is still some uncertainty that hovers over the market right now, because this is still just a pause. So you never really know what's going to happen, even though for 90 days, it looks like there is a bit of a respite.
Analysts and economists coming out saying, well, this was very much a relief to markets. The damage is done. KPMG's chief economist, Diane Swank, said market relief is a head fake unless the administration makes a major course correction. Uncertainty is its own tax on the economy. Analysts at Deutsche Bank said something very similar.
They wrote, the administration is finally signaling responsiveness to the very extreme market conditions. But even if the tariffs are permanently suspended, damage has been done to the economy via a permanent sense of unpredictability in policy. They're still...
huge tariffs on place by the way 125 on chinese imports this is the largest economy in the world the u.s putting a 125 percent uh tariff on the second largest economy in the world trade is going to come to a halt between these two countries unless a deal is reached 25% on steel, aluminum, autos, and all goods not covered by the U.S., Mexico, Canada trade agreement.
10% on nearly all other imports. So there's still very, very heavy tariffs across the board. If you had said that at the beginning of the year that we would have 125% tariffs on China, 25% tariffs on Canada and Mexico, and 10% on nearly every single other good that is imported by the United States, you would have said, well, that is a lot of tariffs, and that is what
these economists are saying is going to serve as an overhang for the economy going forward. In explaining his reversal on massive tariffs, President Trump pointed to the turmoil in the bond market specifically, which he said was getting a little queasy. So here's what's been going on
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Chapter 4: Can drones revolutionize package delivery?
Obviously, they'd like it. They've done about 10,000 deliveries with them. Alphabet-backed Wing is another startup that have done about... half a million drone deliveries, which sounds like a lot. Zipline, on the other hand, is now well into one and a half million deliveries over their lifetime. So they're clearly kind of the leader in the clubhouse when it comes to this new technology.
And a lot of people are very bullish on this from Walmart, who's rolling out this partnership to customers like Sweetgreen Chipotle. And we were kind of laughing before the show. We realized that the two best applications for drone delivery services. One, life-saving medicine in places that are hard to reach. And two, getting you your burrito on time without leaving your house.
So Zipline is kind of running the gamut of these applications. Up next, I'm going to hand it over to Neil for some Neil's numbers.
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