U.S. President Donald Trump clarified on Thursday that his administration’s approach to tariffs would not be influenced by stock market fluctuations.
When questioned about the choice to temporarily halt tariffs on certain Canadian and Mexican products, Trump emphasized that market performance was not a factor in the decision, asserting confidence in the long-term strength of the U.S. economy.
Trump explained that the tariff policy is primarily aimed at addressing the perceived injustices by companies and nations that have previously taken advantage of the U.S. He indicated that this shift might have some impact on the markets but remained firm that the ultimate focus was on halting these practices.
These remarks were made in the Oval Office after the signing of executive orders, where the president also addressed recent market sell-offs, attributing these to “globalists” who, in his view, are resistant to the flourishing future he envisions for America. He maintained that ending these exploitative practices was crucial to maintaining America’s sovereignty.
These developments arose amid a turbulent week for the stock market, with indices like the Nasdaq Composite entering correction territory after a significant drop. Some investors had speculated that Trump’s inclination toward business might lead him to support stock prices, a notion sometimes referred to as the “Trump put.”
However, Trump’s assertive trade stance suggests otherwise, as noted by Nomura economists who questioned the validity of this theory given the administration’s actions.
Additionally, Commerce Secretary Howard Lutnick echoed the sentiment, indicating that the president’s vision extends beyond daily market volatility.
Lutnick stated that the administration’s agenda is focused on stimulating American growth and prosperity, forecasting significant economic benefits such as reductions in interest rates and a potential surge in the stock market.
