I’ve already said this many times: From Smoot Hawley we know that higher tariffs cause retaliation, which causes recession. In recessions, high P/E stocks get crushed as investors put a premium on near-term earnings and cash flows. The way out of this is for Trump to back down and cut a few tariff deals with some key partners (Japan, India), which would reduce the risk of retaliation and reduce the odds of recession. Trump demanding that Powell cut short term rates is like a little boy who breaks his toy and now wants a new one.