A little over 3 months since Donald Trump took office, the NASDAQ is down 16.23%, the S&P 500 is down 10.79%, and the Dow Jones is down 7.90%, and there seems to be no end to the market’s downward spiral. The decline in the market has once again raised fears of a possible recession to new heights. In addition, the NASDAQ, S&P 500, and Dow Jones all had their worst day in the market in the past five years. Remember back in September when he said we would get tired of winning? Well, right now the exact opposite is happening—we are getting tired of losing. In addition to the market dropping, the value of the US dollar has declined, while the Euro is climbing to new heights. That’s right, the US dollar is becoming less and less valuable. So, what’s causing all of this?

Well, quite clearly, Trump is at fault for the market’s nosedive. His global tariffs have sparked fear across the U.S., and when he officially announced them, concerns about a potential trade war and an economic slowdown arose. Leading economists have criticized Trump’s tariffs, saying they could destabilize global markets. 

The absurdity of these tariffs is so clear that the Secretary of Treasury Scott Bessent, in an interview with CNN, urged other countries not to issue retaliatory tariffs against the U.S. Furthermore, he stated, “Everybody sit back, take a deep breath, let’s see where this goes. Because if you retaliate, that’s how you get escalation.” Yet Trump stated that his “Liberation Day” tariffs were reciprocal tariffs, and in retaliation to tariffs against the US. This statement proves Trump’s own point—he is escalating a conflict that could lead to a global trade war. 

In response to the recent sharp decline in the market, White House Press Secretary Karoline Leavett said, “To anyone on Wall Street this morning, I would say trust in President Trump. This is a president who is doubling down on his proven economic formula from his first term.” 

President Trump has filed for bankruptcy 6 times. 

Then today, when President Trump was asked how the markets were doing, he replied, “I think it’s going very well.” The market is having one of the worst quarters it has had in recent years and the President thinks it is going well. 

JPMorgan has said that tariffs would raise taxes on Americans by $660 billion, which is the most in recent history. Many families will now struggle to put food on the table as the tariffs will only increase grocery prices, and iPhones could cost over $2000, analysts say. Apple phone costs could reach that level due to the 54% tariffs on consumer goods, with most of the 200 million Apple iPhones being produced in China. In addition to the global issues that have been caused by the tariffs, “Universal tariffs ranging from 10-50% run the risk of causing major harm to American manufacturers, workers, families, and exporters,” said the CEO of Business Roundtable. He added that the longer the tariffs are enacted, the more of an increase of damage will be exacerbated to the US economy. Experts have also cited a risk of stagflation, which occurs when stagnant growth and rising inflation combine, making economic recovery even more difficult.

However, the White House has stood by its belief that the tariffs will be beneficial in the long run. Time will tell whether this disaster class of a market can turn around.