Donald Trump has advised against succumbing to panic amidst the stock market’s downturn.
On April 2, Trump announced what he called ‘Liberation Day’ for the United States, introducing additional tariffs on various nations as part of an effort to rejuvenate American industry.
Regarding Trump’s strategy, a social media commentator suggested that the 47th President may have made a high-stakes move by intentionally triggering a market decline.
Indeed, the market has taken a significant hit under Trump, as $2 trillion was erased in a mere 25 seconds.
In spite of the market’s decline, Trump has remained steadfast in his support of the tariffs, describing them as ‘beautiful.’ He argued that with ‘massive financial deficits with China, the European and many others,’ tariffs are the sole solution to the problem.
So, does this mean you’re ‘weak’ and ‘stupid’ if you’re alarmed?
According to Trump, that seems to be the case. He expressed his viewpoint on Truth Social, stating: “The United States has a chance to do something that should have been done DECADES AGO. Don’t be Weak! Don’t be Stupid! Don’t be a PANICAN (A new party based on Weak and Stupid people!). Be Strong, Courageous, and Patient, and GREATNESS will be the result!”
Is greatness truly the outcome? A TikTok video shared on Twitter speculated: “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.”
The Twitter user described it as a ‘wild’ but effective ‘chess move,’ praising Trump’s tariffs as a ‘genius play’ that compels companies to manufacture domestically to avoid them and encourages farmers to sell more products within the U.S., thereby reducing grocery prices.
Trump later hinted on Truth Social to Fed Chairman Jerome Powell about the potential for interest rate cuts, describing it as an ‘ideal opportunity.’
He commented: “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, stock markets continue to experience significant declines.
On the evening of April 6, the Dow Jones Industrial Average dropped by 2.1 percent, and the S&P 500 decreased by about 2.5 percent.
The Nasdaq Composite also saw a decline of approximately 3.1 percent, while stocks across Asia suffered substantial losses. Tokyo’s 225 index dropped by nearly eight percent at market opening and settled at a six percent decrease by midday.
Hong Kong’s Hang Seng plummeted by 9.4 percent, and the Shanghai Composite index fell by 6.2 percent.
Trump emphasized that he does not wish to see stock prices fall but acknowledged that sometimes drastic measures are necessary to address larger issues. The lingering question is whether these actions will ultimately benefit the U.S. economy.