Stock Market Plummets as Trump’s Policies Trigger Economic Jitters

The U.S. stock market has tumbled nearly 10% since President Trump took office, marking the worst 10-week start for a new president since 2001, when the dot-com bubble burst under George W. Bush.

Investors attribute the decline to Trump’s aggressive tariff policies announced this week. The broad 10% import duty and targeted hikes have sparked fears of inflation and reduced corporate profits.

The Dow Jones Industrial Average saw its steepest one-day drop since 2020 after the tariff news broke. Analysts say the sell-off reflects deep unease about the administration’s economic direction.

Tech giants like Apple, reliant on Chinese manufacturing, saw sharp declines in their stock prices. Companies warn that higher costs could force them to cut jobs or raise consumer prices.

Energy and automotive sectors also took a hit, as tariffs on Canadian and Mexican imports threaten supply chains. This could disrupt production and increase costs for gasoline and vehicles.

Trump has dismissed the market reaction, calling it a temporary adjustment to his bold agenda. He argues that long-term gains in manufacturing will outweigh short-term financial turbulence.

Financial experts disagree, pointing to historical data showing tariffs often harm economic growth. The 1930s Smoot-Hawley Act, they note, deepened the Great Depression with similar policies.

Small businesses, already strained by inflation, fear they’ll be squeezed hardest by rising import costs. Many lack the resources to absorb or shift away from foreign suppliers quickly.

The Federal Reserve now faces pressure to adjust interest rates to counter potential inflation spikes. However, higher rates could further slow growth, risking a recession, analysts caution.

Some Wall Street optimists argue the market may rebound if Trump negotiates trade deals soon. Others see a prolonged downturn unless the administration scales back its tariff plans.

Consumer confidence has also dipped, with surveys showing growing worry about price hikes. This could curb spending, which drives two-thirds of U.S. economic activity.

Global markets echoed the U.S. decline, with European and Asian indices falling Thursday. The interconnected nature of trade suggests Trump’s policies could ripple worldwide.