Is Trump Crashing the US Stock Market?

This back-and-forth sent markets into a panic, with stocks dropping and investors getting nervous. But Trump? He brushed off recession fears, saying the US economy will “boom” and that companies should prepare for more tariffs. Basically, he believes higher tariffs will push businesses to move their operations to the US.

Well…this heatmap summarizes it all (1 week performance of the US stock market):

– Trump downplayed recession fears, saying the US economy will "boom" despite markets dropping.

– He told corporate execs to expect even more tariffs, making it clear that trade tensions aren’t going away.

– The threat of high tariffs on Canadian metals could disrupt the North American auto industry, which heavily relies on supply chains across the US-Canada border.

– Investors are already nervous, with major indices down about 10% from their peaks.

There’s a wild theory floating around that Trump is intentionally creating chaos in the stock market to pressure Federal Reserve Chair Jerome Powell into cutting interest rates.

The bigger issue? Trump’s unpredictability. One day, he threatens; the next, he pulls back. But if tariffs keep going up, we could see even more market swings.

The Economic Policy Uncertainty Index is at its highest since the pandemic, and consumer sentiment has dropped 16% compared to last year. If businesses hesitate to invest and consumers stop spending, a recession could be hard to avoid.

For those investing in US stocks, things could get bumpy. Companies that depend on exports and global trade (like carmakers, steel companies, and tech firms) might face higher costs. On the flip side, businesses that rely more on the US market could hold up better.