A social media user has speculated whether US President Donald Trump’s tariff strategy represents an elaborate “chess move” with hidden intentions.
On April 2, Trump introduced sweeping new tariffs affecting goods worldwide, declaring the occasion “Liberation Day” for America.
A 25 percent tariff was imposed on all foreign-manufactured automobiles alongside a baseline 10 percent tariff applicable to all nations effective today (April 5) – with exemptions for countries adhering to the USMCA free trade agreement between Mexico, Canada, and the United States.
British imports face a 10 percent tariff while European Union goods encounter a 20 percent tariff.
Various countries have implemented retaliatory tariffs – China imposing one at 34 percent on American goods – and Trump has remained steadfast, but what constitutes his ultimate objective in this strategy?
Trump shared a supporter video on Truth Social claiming: “Trump is purposely crashing the market.”
The TikTok video – subsequently posted to Twitter – proposes: “Trump is crashing the stock market by 20 percent this month, but he’s doing it on purpose.
“Now here’s the secret game he’s playing and it could make you rich. So why is he doing this? To push cash into treasuries which forces the Fed to slash interest rates in May and those lower rates give the Fed the ability to refinance trillions of debt very inexpensively. It also weakens the dollar and drops mortgage rates.”
Characterizing it as a “wild” yet “working” “chess move,” the Twitter user portrays Trump’s tariffs as a “genius play” that “forces companies to build here to dodge them” and “forces farmers to sell more of their products here in the US to bring grocery prices way down.”
The video’s assertion that Warren Buffett praised Trump for executing “the best economic moves he’s seen in over 50 years” has been refuted – Buffett having publicly disavowed endorsement of the president’s economic policies.
Yet the video’s additional theories might contain some validity, as Trump has taken to Truth Social to signal Fed Chairman Jerome Powell regarding interest rates.
Trump stated: “This would be a PERFECT time for Fed Chairman Jerome Powell to cut Interest Rates. He is always ‘late,’ but he could now change his image, and quickly.
“Energy prices are down, Interest Rates are down, Inflation is down, even Eggs are down 69 percent, and Jobs are UP, all within two months – A BIG WIN for America.
“CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!”
Nevertheless, Powell contradicted Trump’s assertions at an event in Virginia yesterday (April 4).
He cautioned: “We face a highly uncertain outlook with elevated risks of both higher unemployment and higher inflation.
“It is now becoming clear that the tariff increases will be significantly larger than expected. The same is likely to be true of the economic effects, which will include higher inflation and slower growth.”