Trump’s relentless push for tariffs cost trillions during first 100 days in office

NEW YORK

US President Donald Trump’s aggressive tariff campaign in his second term has rattled financial markets, causing massive losses in the first 100 days of his presidency and stoking volatility that erased around $6 trillion from US stock indexes at its peak.

Trump has been in office for 100 days now since Jan. 20.

Since his election victory in November 2024, the US stock markets drove on the expectations of corporate tax cuts and deregulation, reaching record highs.

The Dow Jones and the Nasdaq saw all-time highs in December last year, while the S&P 500 broke a record in February this year.

The stock markets the day after Trump took office for his second term started on a positive course, but his tariff rhetoric and inflation and recession concerns overshadowed the positive mood in the markets.

Trump announced tariffs on the US’s largest trading partners, namely Canada, Mexico, and China, as well as sectoral tariffs on steel, aluminum, and automobiles, triggering concerns and uncertainties in the markets, which, in turn, led to slow growth estimates and volatility.

The President announced his reciprocal tariffs, ranging from 1a 0% base rate to 50%, on all countries on April 2, sending shockwaves through the markets, triggering a global sell-off.

The highest daily losses since the pandemic was observed in the two trading days following the announcement of the reciprocal tariffs.

The Dow Jones lost 9.3%, the S&P 500 10.5%, and the Nasdaq 11.4%, wiping off around $6 trillion from US markets.

The reciprocal tariffs announcement followed more and more losses over the weekend in Asian stock markets and the crypto market, with speculations of a new Black Monday stock market crash, as declines reached 20% in the US markets on April 7.

Trump’s 90-day tariff pause that came shortly after the reciprocal tariffs led to a temporary rebound in the markets, but before it was official, the White House denied the reports that the president would suspend tariffs for three months. Trump said he would impose an additional 50% tariff on China if Beijing did not comply to lift the 34% retaliatory tariff on the US.

The US stock markets opened with a gain of over 3% on April 8 with hopes and optimism for negotiations, but closed with losses as the optimism faded.

As Trump’s tariffs on China reached a total of 104% -- including ones that were due to alleged fentanyl trafficking -- China raised its tariffs on the US to 84%. Escalating tariff tensions shook the US stock markets and Trump said to “BE COOL!" on Truth Social, saying “everything is going to work out well” on April 9.

The next day, Trump told investors it was a “great time to buy,” which led to the reversal of losses on the Dow Jones and the S&P 500.

At noon on the same day, Trump’s 90-day tariff pause, except for China, fueled the rise further in the stock market. He also said he would increase the tariff on China to 125%.

Trump’s Truth Social post telling investors to buy just before the tariff pause raised concerns and suspicions of insider trading.

Investors were somewhat reassured after the 90-day tariff pause and Trump’s statements on countries seeking to negotiate with him. The Dow Jones rose nearly 8%, the highest increase since March 2020, while the S&P 500 climbed 9.5%, and the Nasdaq saw its largest daily increase since January 2001 at over 12% at the close on April 9.

However, tariff concerns returned the day after, leading to losses between 2.5% to 4.3%.

The turbulent week of April 7-11 saw the Dow Jones gain 4.95%, the S&P 500 5.7%, and the Nasdaq 7.29%.