President Donald Trump shocked the world and the stock market on April 2 by announcing tariffs on all imported goods from over 60 countries.
During the Rose-Garden Ceremony, where Trump announced these tariffs, he claimed, “For decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike.”
Trump described these tariffs as “reciprocal,” claiming that they are based on unfair trading practices from other countries. The tariffs range from 10 percent to 50 percent, with a 34 percent tariff being put on China and a 20 percent tariff on the European Union.
The markets have reacted negatively to these announcements, with the most important U.S. stock index, the S&P 500, dropping over five percent over the weekend. Today, Apr. 7, the S&P 500 ended the day with a drop of 0.2 percent. Although throughout the day the stock swung from a 4.7 percent loss to a 3.4 percent gain.
The U.S. dollar has taken a hit, too. Although it remains the world’s top reserve currency, alongside the Euro, the dollar fell by 1.7% in value since the tariffs were announced, its largest drop since 2022.
The stock market is not the only thing that’s going down; Trump’s approval rating hit a new low this past week. A Recent poll from The Wall Street Journal reported that only 46 percent of people approve of the president’s overall job performance, with 51 percent saying they disapprove.
The poll was conducted after Trump announced some tariffs but before a larger array of sweeping tariffs was announced on April 2.
Trump has held a long-time belief that other countries have been ripping off the United States by manipulating their currencies and using non-tariff barriers to achieve cheaper exports. In 1987, on an episode of “Larry King Live,” Trump said, “A lot of people are tired of watching the other countries ripping off the United States. This is a great country.”
While this quote is from almost 40 years ago, it still captures the core of Trump’s economic philosophy — one rooted in nationalism and a belief that America must renegotiate its role in the global economy.
Trump’s economic team, including current Secretary of the Treasury, Scott Bessent, who is a hedge fund manager and former Yale Professor, joined the Trump administration to help achieve this goal.
