—— Trump Needs Tax Cut Policy to Revive Markets; Southwest Airlines Cancels 50-Yr Tradition; US Canada Trade War Escalates; US Job Openings Rise Amid Strong Hiring Demand; Delta, American Airlines Give Weak Guidance; Five Billionaires Lost $209 Billion Post Trump Inauguration; Congestion Pricing Gains More Support from New Yorkers
1. Trump Needs Tax Cut Policy to Revive Markets
As Trump’s tariffs plunge markets into chaos, the pressure is mounting for the president to expedite his flagship economic stimulus: a sweeping tax reform.
Trump’s team is warning of short-term difficulties as they push for a radical overhaul of trade policies and public spending. They argue that tax cuts, by putting more cash directly into consumers’ hands, could help mitigate the downturn. Supporters hope to pass the bill by July, although significant challenges remain.
In his first term, Trump cut taxes before igniting a trade war. Now, however, the order has reversed amid a more fragile economic climate, with high interest rates straining the housing market and persistent inflation creating additional headwinds. Moreover, his second-term tariffs are proving to be both steeper and more unpredictable, as evidenced by the erratic measures imposed on Canada and Mexico.
These factors are contributing to a sharp decline in stock markets—a key indicator for Trump—and have sparked concerns about an impending recession. While tax cuts might revive market confidence as they did in 2017, Democrats argue that the benefits would largely flow to the wealthy.
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2. Southwest Airlines Cancels 50-Yr Tradition
Southwest Airlines Co. will start charging fees for certain checked bags, marking the end of its long-standing free baggage policy that has been a cornerstone of the airline for over 50 years.
Under the new rules announced Tuesday, passengers will incur a fee for their first and second checked bags unless they have top-tier loyalty status or are booked on a business fare. These changes will take effect on flights booked on or after May 28.
This shift away from the “bags fly free” tradition comes amid pressure from activist Elliott Investment Management, now one of Southwest’s largest shareholders.
The airline has been evolving from its traditional one-size-fits-all model, having recently unveiled plans to eliminate its open seating policy and introduce a new premium cabin section along with red-eye flights.
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3. US Canada Trade War Escalates
President Donald Trump said he was increasing the steel and aluminum tariff on Canadian goods to 50% to retaliate against Ontario’s move to place a levy on electricity sent to the US.
“This will go into effect TOMORROW MORNING, March 12th,” Trump said in a social media post. The move doubles a planned 25% metals tariff set to take effect just after midnight.
Trump said he would also “substantially increase” tariffs on Canadian automobile parts on April 2 if the country does not drop tariffs on dairy products and other US goods.
The move would “essentially, permanently shut down the automobile manufacturing business in Canada,” Trump said.
The move is the latest escalation in Trump’s trade dispute with Canada, and risks further upsetting markets which have posted steady losses since the president moved forward last week with an initial round of tariffs on Canada and Mexico.
US stocks resumed their decline after Trump said he would double the tariffs; the S&P 500 Index was down 0.3% at 10:17 a.m. In New York, while the Dow Jones Industrial average fell by 1%.
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4. US Job Openings Rise Amid Strong Hiring Demand
Walgreens Boots Alliance Inc. has reached a deal to be acquired by Sycamore Partners for $10 billion, effectively taking the venerable US drugstore chain private.
Under the terms announced Thursday, Sycamore will pay $11.45 per share in cash for Walgreens—a premium of roughly 8% over the retailer’s most recent closing price in New York. The stock climbed 5.7% in after-hours trading.
This valuation marks a sharp drop from Walgreens’ peak a decade ago, when it was valued at more than $90 billion. Competition from online sellers and big-box chains, along with tighter reimbursements from health insurers, have weighed heavily on the share price over the past 10 years. The stock has lost about half its value in the last 12 months alone.
The transaction, slated to close in the fourth quarter of 2025, includes a 35-day “go-shop” period during which Walgreens can seek and review alternative offers.
“It actually happened,” wrote Leerink Partners analyst Michael Cherny in a research note. “We don’t expect a competing bid to emerge given the size of the deal and its many moving parts.”
Bloomberg – US Job Openings and Quits Rise in Sign of Resilient Labor Market
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5. Delta, American Airlines Give Weak Guidance
Between Trump’s election and his inauguration, the world’s wealthiest experienced a windfall as the S&P 500 Index reached multiple record highs. Investors flocked to equity and crypto markets, betting that Trump’s policies would favor business growth. For example, Tesla Inc., led by Elon Musk, saw its stock surge by 98% in the weeks following the election, hitting an all-time high. Meanwhile, LVMH, under Bernard Arnault, increased by 7% in the week before Inauguration Day—adding $12 billion to Arnault’s wealth. Even Meta Platforms Inc., despite having banned Trump from its platform in 2021, enjoyed a 9% gain before the new term and an additional 20% rise during Trump’s first four weeks in office.
However, the initial expectations that Trump’s new term would keep driving market gains have been dashed. Since taking office, the S&P 500 has dropped 6.4%, as mass layoffs among government employees and the president’s inconsistent tariff decisions have unsettled investors, with the index falling 2.7% on Monday alone.
The companies that had bolstered the fortunes of those celebrating the inauguration have been among the biggest losers, collectively shedding $1.39 trillion in market value since January 17, the last trading day before the inauguration.
Bloomberg – US Airlines, Retailers Provide Bleak Outlook for Consumer Demand
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6. Five Billionaires Lost $209 Billion Post Trump Inauguration
China’s exports have reached a record high so far this year as the pressure of increased US tariffs—and the threat of more—prompted companies to frontload their shipments.
Exports grew by 2.3% in the first two months of the year, totaling $540 billion, according to a statement from the General Administration of Customs on Friday. Meanwhile, imports unexpectedly dropped by 8.4%, resulting in a record trade surplus of nearly $171 billion.
Economists surveyed by Bloomberg had anticipated a 5.9% increase in exports and a 1% rise in imports. These figures shed light on how the world’s largest trading nation has adjusted since Donald Trump began raising tariffs on Chinese goods.
The US imposed a 10% tariff on nearly all Chinese imports on February 4, and later increased that rate to 20% earlier this week.
Bloomberg – Billionaires at Trump’s Swearing-In Have Since Lost $209 Billion
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7. Congestion Pricing Gains More Support from New Yorkers
New York City’s contentious congestion pricing program is slowly winning over support, though it still hasn’t secured a majority of voter approval.
The program, which launched on January 5, charges most drivers $9 during peak hours to enter Manhattan south of 60th Street. Its goals are twofold: reduce traffic congestion and generate revenue to upgrade the city’s over-a-century-old transit system.
According to a recent Siena College poll of registered voters statewide, 40% believe the fee should be eliminated—mirroring the Trump administration’s push—while 33% support keeping the program in place. This marks a modest shift from a December poll, where opposition was at 51% compared to just 29% in favor.
Among New York City residents specifically, attitudes have notably reversed. Now, 42% say the toll should remain, while 35% want it scrapped, compared to December figures showing only 32% in support and 56% opposed.
Bloomberg – NYC Congestion Pricing Toll Gains Support Among City Residents
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