American stock markets plummeted in the wake of Donald Trump’s latest trade war maneuver, but the former president remained unfazed, championing his economic strategy even as Wall Street reeled.
“THE OPERATION IS OVER! THE PATIENT LIVED, AND IS HEALING. THE PROGNOSIS IS THAT THE PATIENT WILL BE FAR STRONGER, BIGGER, BETTER, AND MORE RESILIENT THAN EVER BEFORE,” Trump declared in all caps, brushing off concerns about the market meltdown.
Meanwhile, White House officials scrambled to defend the policy, touting Trump’s vision of reciprocal tariffs that would supposedly generate trillions in revenue, billions in foreign investments, and millions of jobs. The markets, however, weren’t buying it. The NASDAQ tumbled nearly 5%, while the Dow and S&P shed 4%, erasing around $2 trillion in market value. Analysts slammed Trump’s aggressive tariffs as reckless, with some warning of long-term economic devastation.
Former Treasury Secretary Lawrence Summers minced no words: “Never before has an hour of presidential rhetoric cost so many people so much… The best estimate of the loss from tariff policy is now closer to $30 trillion or $300,000 per family of four.”
Democrats went further, branding the tariffs as “ECONOMIC TERRORISM—crushing small businesses, jacking up prices, and killing jobs.” The backlash was swift, but Trump’s team fought to spin the narrative. Treasury Secretary Scott Bessent urged patience, advising foreign nations against retaliatory measures. “Sit back. Take it in. Let’s see how it goes. Because, if you retaliate, there will be escalation. If you don’t, this is the high water mark,” he said.
Trump’s son, Eric, also jumped in, warning that countries should rush to negotiate trade deals with his father. “The first to negotiate will win. The last will absolutely lose,” he tweeted.
Yet, even some of Trump’s usual allies appeared wary. A Republican senator cautiously acknowledged the potential long-term benefits but added, “In the long run, he’s right. But… in the long run, we’re all dead. The short run matters too.”
One of the sharpest rebukes came from Trump’s own former vice president, Mike Pence. “The Trump Tariff Tax is the largest peacetime tax hike in U.S. history,” he said, warning that the tariffs—ten times larger than those imposed during the Trump-Pence administration—would cost American families an average of $3,500 per year.
Supporters, however, defended Trump’s commitment to his decades-old trade philosophy. Commerce Secretary Howard Lutnick shared a 1988 Oprah interview in which Trump voiced nearly identical complaints about the U.S. being “ripped off” by foreign nations.
But critics argue that Trump’s narrative is based on misinformation. The U.S. was instrumental in pushing globalization onto reluctant developing nations, including India—one of Trump’s frequent trade targets. Many of his claims, analysts say, are exaggerated or outright false.
For instance, Trump has repeatedly asserted that the U.S. trade deficit with India is $100 billion; the actual figure hovers around $45 billion. He also claimed India imposes a 70% tax on American motorcycles, when in reality, the rate is 40%, and manufacturers like Harley-Davidson have sidestepped it by assembling bikes in India—just as foreign automakers do in the U.S., creating American jobs.
Trump’s assertion that India imposes a 52% tariff rate on U.S. goods is also misleading. According to the World Trade Organization, India’s average tariff in 2023 was about 17%—with agricultural goods taxed at 39% and non-agricultural goods at around 14%. The trade-weighted average stood at 12%, compared to the U.S.’s 2%.
Still, Trump’s MAGA loyalists dismiss these discrepancies as mere negotiating tactics—a strategy straight out of The Art of the Deal. Whether the gamble pays off or backfires spectacularly remains to be seen.
