From his Palm Beach golf course, Donald Trump took to Truth Social with a defiant message, even as Wall Street plunged into chaos.
“This is a great time to get rich,” he posted, waving off a market crash that saw $6 trillion wiped off in just days. “China played it wrong, they panicked — the one thing they cannot afford to do!” he added, in a typical all-caps outburst.
The 78-year-old former President appeared unfazed by the economic turmoil triggered by his sweeping new tariffs, part of a campaign he has branded “Liberation Day”. His posts—punctuated with slogans like “ONLY THE WEAK WILL FAIL!”—insisted the pain was temporary, the strategy masterful.
Markets didn’t agree.
The Dow Jones nosedived 5.5%, the S&P 500 dropped nearly 6%, and Nasdaq tumbled 5.8%, plunging it into bear market territory. The chaos mirrored losses in Asia and Europe, where major indices like Germany’s DAX and France’s CAC 40 sank. Oil fell to its lowest level since 2021, copper dipped, and even the Japanese Nikkei slid 2.8%.
Also Read: “There will be blood”: JPMorgan warns of 60% global recession odds under Trump tariffs
China hits back, world reacts
Beijing, which bore the brunt of Trump’s tariffs, struck back swiftly. A 34% duty on all US imports will kick in from 10 April. China also announced it would file a complaint at the World Trade Organization and cut off rare earth exports — essential materials for electronics and medical devices.
Other trading partners were more cautious. The European Union, hit with a 20% tariff, said it would act “in a calm, carefully phased, unified way,” according to EU trade chief Maros Sefcovic. But he also warned the bloc “won’t stand idly by.”
France’s Economy Minister Eric Lombard called on businesses to show “patriotism,” while hinting that retaliation might come in forms other than tariffs — such as digital taxes and tighter data regulations. Germany echoed calls for calm, but both countries have floated the idea of taxing American tech giants in response.
Even Japan, slapped with a 24% tariff, urged restraint. Prime Minister Shigeru Ishiba said the country would pursue a “calm-headed” response.
Also Read: Gold prices to fall below Rs 56,000? Morningstar analyst predicts nearly 40% decline as yellow-metal hits all-time high
Business confusion, supply shocks
Trump's message from Mar-a-Lago was clear: “Big business is not worried about the Tariffs, because they know they are here to stay.” But not all businesses seemed on board.
General Electric Healthcare and DuPont took major hits following China’s retaliation. Nintendo postponed preorders for its upcoming Switch 2 console, citing “evolving” conditions. Automaker Stellantis temporarily paused operations in some Canadian and Mexican plants. In contrast, Nissan said it would expand US production, while Volvo, owned by China’s Geely, followed suit.
Still, the general mood was apprehensive. A sweeping 25% tariff on all foreign-made vehicles took effect this week. Canada responded with similar duties on US imports.
Also Read: Apple’s ‘Make in India’ dream meets tariff reality in Trump’s trade salvo
‘He’s out golfing!’
Back home, Trump’s critics slammed both his absence and his policy.
“He’s messing around with people’s lives... while he’s out golfing!” fumed Democratic Senator Amy Klobuchar. Even Republican Senator Ted Cruz — a usual ally — expressed concern, warning that the tariffs could “hurt jobs and hurt America.”
Federal Reserve Chair Jerome Powell struck a cautious tone. “Higher inflation and lower growth” were likely outcomes of Trump’s trade war, he said — not exactly a recipe for prosperity.
Trump, undeterred, lashed out again. “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” he posted, breaking long-standing protocol around the Fed’s independence.
A tax by another name
The broader economic picture is worrying. Analysts say the tariffs function as a massive tax hike. JPMorgan put the figure at around $660 billion — the largest increase in decades — and warned it could push US inflation up by nearly 2% this year. The result? A likely recession.
Paul Donovan, Chief Economist at UBS Global Wealth Management, said, “The US isn’t sneezing, the US is hacking off one of its limbs.” A few months ago, he noted, America’s economy was in good shape. Now, the risk of recession is real — and global.
JPMorgan and Deutsche Bank have both flagged rising recession risks. US consumer prices were already 2.8% higher year-on-year in February. Add Trump’s tariffs, and inflation could climb steeply while growth stalls.
Global shockwaves
The impact is unlikely to stay contained. If American households pull back spending, demand for foreign goods drops. That could lead to job cuts and economic slowdowns abroad, especially in Europe and Asia.
Ursula von der Leyen, president of the European Commission, warned that the real burden would fall on businesses. “All businesses, big and small, will suffer from day one… The costs of doing business with the United States will drastically increase,” she said.
Even without direct retaliation, European consumers may feel the pinch if their governments choose to answer Trump in kind. “European consumers will face the same sort of price increases that US consumers are facing,” said Thomas Sampson of the London School of Economics.
Others, like France’s Lombard, have floated more targeted moves — perhaps going after individual firms rather than imposing broad tariffs.
Oxford Economics believes a global recession is still avoidable, but barely. “It would be the weakest annual growth rate since the global financial crisis, excluding the pandemic period,” noted Ben May, the firm’s director of macroeconomic research.
Trump's strategy is built on economic brinkmanship — the idea that pain now means strength later. “My policies will never change,” he said. “This is a great time to get rich.”
He’s betting the US can weather the storm better than its rivals. But analysts say the gamble might blow back. The US could be hardest hit if it finds itself isolated while the rest of the world imposes coordinated countermeasures.
For now, Trump is all in — golfing, posting, and pushing a vision of America that rises through economic war. Whether that vision materialises, or whether the rest of the world gets dragged into a slowdown, is still playing out on trading floors across the globe.
“This is a great time to get rich,” he posted, waving off a market crash that saw $6 trillion wiped off in just days. “China played it wrong, they panicked — the one thing they cannot afford to do!” he added, in a typical all-caps outburst.
The 78-year-old former President appeared unfazed by the economic turmoil triggered by his sweeping new tariffs, part of a campaign he has branded “Liberation Day”. His posts—punctuated with slogans like “ONLY THE WEAK WILL FAIL!”—insisted the pain was temporary, the strategy masterful.
Markets didn’t agree.
The Dow Jones nosedived 5.5%, the S&P 500 dropped nearly 6%, and Nasdaq tumbled 5.8%, plunging it into bear market territory. The chaos mirrored losses in Asia and Europe, where major indices like Germany’s DAX and France’s CAC 40 sank. Oil fell to its lowest level since 2021, copper dipped, and even the Japanese Nikkei slid 2.8%.
Also Read: “There will be blood”: JPMorgan warns of 60% global recession odds under Trump tariffs
China hits back, world reacts
Beijing, which bore the brunt of Trump’s tariffs, struck back swiftly. A 34% duty on all US imports will kick in from 10 April. China also announced it would file a complaint at the World Trade Organization and cut off rare earth exports — essential materials for electronics and medical devices.
Other trading partners were more cautious. The European Union, hit with a 20% tariff, said it would act “in a calm, carefully phased, unified way,” according to EU trade chief Maros Sefcovic. But he also warned the bloc “won’t stand idly by.”
France’s Economy Minister Eric Lombard called on businesses to show “patriotism,” while hinting that retaliation might come in forms other than tariffs — such as digital taxes and tighter data regulations. Germany echoed calls for calm, but both countries have floated the idea of taxing American tech giants in response.
Even Japan, slapped with a 24% tariff, urged restraint. Prime Minister Shigeru Ishiba said the country would pursue a “calm-headed” response.
Also Read: Gold prices to fall below Rs 56,000? Morningstar analyst predicts nearly 40% decline as yellow-metal hits all-time high
Business confusion, supply shocks
Trump's message from Mar-a-Lago was clear: “Big business is not worried about the Tariffs, because they know they are here to stay.” But not all businesses seemed on board.
General Electric Healthcare and DuPont took major hits following China’s retaliation. Nintendo postponed preorders for its upcoming Switch 2 console, citing “evolving” conditions. Automaker Stellantis temporarily paused operations in some Canadian and Mexican plants. In contrast, Nissan said it would expand US production, while Volvo, owned by China’s Geely, followed suit.
Still, the general mood was apprehensive. A sweeping 25% tariff on all foreign-made vehicles took effect this week. Canada responded with similar duties on US imports.
Also Read: Apple’s ‘Make in India’ dream meets tariff reality in Trump’s trade salvo
‘He’s out golfing!’
Back home, Trump’s critics slammed both his absence and his policy.
“He’s messing around with people’s lives... while he’s out golfing!” fumed Democratic Senator Amy Klobuchar. Even Republican Senator Ted Cruz — a usual ally — expressed concern, warning that the tariffs could “hurt jobs and hurt America.”
Federal Reserve Chair Jerome Powell struck a cautious tone. “Higher inflation and lower growth” were likely outcomes of Trump’s trade war, he said — not exactly a recipe for prosperity.
Trump, undeterred, lashed out again. “CUT INTEREST RATES, JEROME, AND STOP PLAYING POLITICS!” he posted, breaking long-standing protocol around the Fed’s independence.
A tax by another name
The broader economic picture is worrying. Analysts say the tariffs function as a massive tax hike. JPMorgan put the figure at around $660 billion — the largest increase in decades — and warned it could push US inflation up by nearly 2% this year. The result? A likely recession.
Paul Donovan, Chief Economist at UBS Global Wealth Management, said, “The US isn’t sneezing, the US is hacking off one of its limbs.” A few months ago, he noted, America’s economy was in good shape. Now, the risk of recession is real — and global.
JPMorgan and Deutsche Bank have both flagged rising recession risks. US consumer prices were already 2.8% higher year-on-year in February. Add Trump’s tariffs, and inflation could climb steeply while growth stalls.
Global shockwaves
The impact is unlikely to stay contained. If American households pull back spending, demand for foreign goods drops. That could lead to job cuts and economic slowdowns abroad, especially in Europe and Asia.
Ursula von der Leyen, president of the European Commission, warned that the real burden would fall on businesses. “All businesses, big and small, will suffer from day one… The costs of doing business with the United States will drastically increase,” she said.
Even without direct retaliation, European consumers may feel the pinch if their governments choose to answer Trump in kind. “European consumers will face the same sort of price increases that US consumers are facing,” said Thomas Sampson of the London School of Economics.
Others, like France’s Lombard, have floated more targeted moves — perhaps going after individual firms rather than imposing broad tariffs.
Oxford Economics believes a global recession is still avoidable, but barely. “It would be the weakest annual growth rate since the global financial crisis, excluding the pandemic period,” noted Ben May, the firm’s director of macroeconomic research.
Trump's strategy is built on economic brinkmanship — the idea that pain now means strength later. “My policies will never change,” he said. “This is a great time to get rich.”
He’s betting the US can weather the storm better than its rivals. But analysts say the gamble might blow back. The US could be hardest hit if it finds itself isolated while the rest of the world imposes coordinated countermeasures.
For now, Trump is all in — golfing, posting, and pushing a vision of America that rises through economic war. Whether that vision materialises, or whether the rest of the world gets dragged into a slowdown, is still playing out on trading floors across the globe.
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