President Donald Trump is defending his trade policies amid a significant stock market sell-off. The Dow Jones Industrial Average plunged nearly 900 points on Tuesday, the worst day this year, as investors grew increasingly concerned about a potential recession. The White House maintains that the tariffs targeting major trading partners are necessary to protect American jobs and level the playing field for U.S. industries.
Officials argue that short-term economic pain could lead to long-term gains for the country. Trump blamed “globalists” for the market downturn when asked if his tariffs were causing the sell-off. “Well, a lot of them are globalist countries and companies that won’t be doing as well,” Trump said in the Oval Office on Thursday, “because we’re taking back things that have been taken from us many years ago.”
The president used the term “globalist” to describe people, companies, and countries throughout the hour-long conversation, making it difficult to pinpoint what he was specifically referring to.
Critics have condemned the term, saying it is linked to antisemitic conspiracy theories.
Trump defends tariffs during market slump
Trump issued temporary exemptions for many goods coming into the U.S. from Canada and Mexico, just two days after imposing 25% tariffs on the neighboring countries.
He denied that these pauses were in response to the market rout. “Nothing to do with the market,” Trump said, adding, “I’m not even looking at the market.” He acknowledged that the tariffs could cause some brief disruption but didn’t think it would be significant. As additional tariffs are set to go into effect on Wednesday, analysts believe these trade policies are exacerbating market volatility and investor anxiety.
The administration remains firm on its stance, while critics argue that the tariffs are causing more harm than good and that a more cooperative approach is needed to address trade imbalances. The economic landscape is in a delicate balance, and the global implications of the White House’s policies remain under close scrutiny. Investors are bracing for another potentially challenging trading day as concerns mount over the tariffs and a possible government shutdown.
