The U.S. President’s whirlwind blitz through thebureaucracy, economic policy and geopolitical affairs isn’t slowing down. Trumpthreatened potential tariffs of around 25% on automobile, semiconductor andpharmaceutical imports. This development added to an already fragile marketoutlook this week, amid cautious optimism for an end to the conflict in Ukraine— a topic Trump also weighed in on.

On Tuesday night, the President stated he plans to impose25% tariffs on imported cars, drugs, and chips. The auto industry will be firstto feel the impact, with the new tax charges set to take effect on April 2, theday after Trump’s administration is expected to present reports outliningtariff options.

A 25% tariff on imported cars could disrupt the alreadystruggling global auto industry. Trump has long criticized what he considersunfair treatment of U.S. auto exports in foreign markets. The European Union,for example, imposes a 10% tariff on imported vehicles — four times higher thanthe 2.5% U.S. tariff on passenger cars.

Tariffs on pharmaceutical drugs and semiconductor chipswould also start at "25% or higher", substantially increasing furtherover the next year. However, Trump did not specify when these tariffs would beformally announced, adding that he wants to give drugmakers and chipmakers sometime to establish production facilities in the United States to avoid thelevies.

Trump also hinted at upcoming announcements from theworld's largest companies regarding new investments in the United States,though he did not offer further details.

Beyond their immediate impact on specific industries, thesesteep tariffs could have far-reaching consequences, potentially driving upprices for consumers and increasing costs for businesses.

Meanwhile, Trump has initiated U.S.-Russianegotiations, marking a potential shift in diplomatic relations. OnTuesday, senior officials from both countries took steps toward a major reset,agreeing to collaborate on ending the conflict in Ukraine, increasing financialinvestment, and restoring diplomatic ties. The meeting was a striking displayof bonhomie after three years of American efforts to isolate Moscow.

In financial markets, the SPX reached its first record high of theyear, rising 0.2% and pushing its total market cap past $51 trillion. TheNasdaq Composite and Dow Jonesindex posted smaller gains, each rising by less than 0.1%.

The late-session rally was driven by investors increasingtheir bets on utilities, financials and energy companies. Among the S&P500’s eleven sectors, only three closed in negative territory, while the energysector led the gains, surging more than 1.4%.

Looking ahead, the Federal Reserve is set to release itslatest meeting minutes today. Three weeks ago, Fed Chair Jay Powell reaffirmedthat interest rates would remain unchanged, emphasizing a “wait-and-see”approach as officials assess the economicimpact of Trump’s policies.

The minutes will offer insight into the Fed’s stance onpotential future interest rate cuts, inflation expectations and the broadereconomic implications of the proposed tariffs.