Stock prices are lower on the day after the big trade U-turn.

I'm David Brancaccio in Los Angeles after Wall Street posted its third highest jump in a single day since the Second World War,

with the Dow up nearly 3,000 points, 7.9 percent this morning.

Some of that gain is melted away. The Dow is down 720 points, nearly 2% in early

trading. The S&P is down more than 2%. The NASDAQ is down 2.6%. Diane Swank is chief economist of the

audit tax and advisory firm, KPMG. Morning. Good morning. Let's be careful of headlines that say the tariff issue has gone away because the president did a U-turn. What's your calculation?

The new tariff rate as of today is now higher than it was on April 2nd. It is actually above 30% effective tariff rate given the outsized tariffs on China and the across-the-board tariffs

of 10 percent on all other countries with the other tariffs that we already had in the pipeline.

That puts the effective tariff rate in the United States at a record high.

Some listening to this may favor tariffs in the interests of perhaps reshoring jobs. Others may not

like tariffs. What does history show you an economist about tariffs and the economy?

Tariffs of this kind of magnitude always do more damage than good. And although they may protect some

industries, we know even from the 2018, 201919 trade war that the industries they protected didn't make up for the industries that had to pay higher costs or the consumers that had to pay higher costs and that job losses outweighed job gains.

And that's why we're so concerned about the economic consequences of this.

Diane Swung, Chief Economist at KPMG, thank you. Thank you.

Now, two quick takes from businesses navigating this especially tricky time at borders in

2003. America imported about $69 billion worth of furniture with China being the main source.

Andrew Koenig is CEO of City Furniture with 25 stores in Florida.

A lot of the manufacturers that I talk to, they don't know what to do, you know, because

there's no certainty or, you know, should we make all these massive decisions, we need stability. We need predictability in our

government with all these others to figure that out and get to there as quickly as possible.

So this is a daily management thing until we get there. You know, this reminds me of COVID.

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