Americans are accustomed to Trump as a businessman. When the White House said something that made people feel bad, the president would back down after seeing the stock market drop. Not anymore. These views shifted when the president said that markets did not affect him as much as people assumed. This is President Trump’s new stance: rebuilding wealth based on decades or even a century from now. This can’t be judged by the yearly results of the biggest companies in the American stock market. Along with what his Treasury Secretary Scott Bessent said, the White House told the markets that the president can now handle some short-term economic and market pain. The math has changed because of this. Just one day after US stock markets dropped sharply because people were worried about how Trump’s policies would affect them, the president decided to double tariffs on steel and aluminum from Canada. This is in response to New York, Minnesota, and Michigan’s higher electricity bills from Canada, which are worth about $100 per bill. On Monday, Ontario’s premier, Doug Ford, said that electricity going to the US would cost 25% more and threatened to cut off the supply totally. Two more things are at play here. There are signs that people’s feelings about the US economy might change, which makes people wonder if there will be a recession. However, the Atlanta branch of the US Federal Reserve’s most recent real-time study says that the US economy will shrink in the first three months of the year, and Trump isn’t worried. Trump is enjoying keeping people uncertain of his moves One of the weapons that Trump is using to scare off other nations is uncertainty. He gives directives, then pauses them for a while, then doubles at some point. For example, tariffs on some goods from Canada and Mexico were recently put off after the car industry was given 30 days off. But he still plans to impose “reciprocal” tariffs starting on April 2. This, however, helped warm things up a bit with Canada, though people are still angry and unsure about the trade war. However, after imposing $21 billion in tariffs on U.S. goods as a response, the government said it would not proceed with its second wave of $87 billion in duties. China responded to Trump’s tariffs by putting an extra 15% tax on chicken, pork, soybeans, and beef, which are all important American farm goods. Stocks went down on Monday because of rising trade tensions. Investors are worried about how Trump’s trade wars could hurt the American economy. Trump decided to double the tax on Chinese goods to 20% on March 4, which led to the Chinese tariffs. Before the taxes, China’s Commerce Ministry said that goods already in transit would not be affected by them until April 12. It seems like Trump is using uncertainty intentionally because s ome very important parts of the US government aren’t sure what the White House is up to. Even Jerome Powell is waiting to see what Trump does next for him to make a decision. Powell said that the central bank can remain patient in adjusting its benchmark interest rate because of uncertainty around the potential impact of President Trump’s economic policies. The uncertain markets continue to crash Monday was a great hit for the market. The sell-off started with tech stocks, which hurt the S&P 500 and pushed the Nasdaq into recession territory. The S&P 500 fell 8.6% from its all-time high on February 19 to the end of the day. The magnificent seven were all in red. Tesla recorded a decline of 15.4%. The stock prices of Nvidia fell by 5% and Palantir (PLTR), another big name in AI, went down by 10%. While dangerous assets were being sold off, the crypto market has not been doing too well. Bitcoin fell to about $78,000, its lowest level since November. The market has been steady today, with a little recovery, although the anxiety is still there. Analysts say it is time to buy instead of panicking. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now
