NEW YORK, NY – March 11: Traders work on the floor of the New York Stock Exchange (NYSE) on March 11, 2025 in New York City. Following this worst day for the market this year, the Dow has dropped nearly 500 points in morning trading. (Photo: Spencer Platt/Getty Images) Spencer Platt/Getty Images
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Spencer Platt/Getty Images
President Trump has long been concerned about the stock market, boasting his performance during his first term, pledging investors a second business-friendly policy.
But now he appears to have other priorities. On Tuesday, Trump doubled the steepest slopes and chaotically implemented new tariffs despite the growing number of alarms being raised on Wall Street and beyond.
In his true social network post, Trump said the US will impose an additional 25% tariff on steel and aluminum from Canada, raising it to 50% overall.
US stocks sank again on Tuesday, the day after the market had its worst day of the year. The Dow fell another 670 points (1.6%) before the early afternoon morning trade. The S&P 500 fell 1.3%, while the Nasdaq fell 0.9%.
Investors and economists are increasingly worried about the impact of tariffs on the US economy and the potential for a recession. That possibility will grow as businesses respond to ongoing market turmoil, financial experts warn.
“In a way, it’s a self-fulfilling prophecy,” says Peter Richity, a finance professor at Tulane University (also a board member of the NPR member station WWNO in New Orleans).
“If you think a recession is coming, stop capital expenditures, don’t hire so many people, then you’ll end up in a recession,” he says.
Trump will dig
But Trump appears to be committed to his new tariffs despite widespread concerns that it will raise prices for consumers and businesses, raise fuel inflation and exacerbate the global trade war.
In an interview with Fox News that aired on Sunday, the president refused to rule out the possibility of a recession. Instead, he said investors should expect a “transition period” from the economy.
“We’re bringing wealth back to America. That’s a big deal. And there’s always a period (there’s) going to take a little while,” Trump told Fox News.
That scared investor. By the end of Monday, the US market had lost its $4 trillion worth. By that night, however, the White House had downplayed Wall Street concerns.
“President Trump will bring historic job, wage and investment growth in his first term and will do so again in his second term,” White House spokesman Kush Desai said in a statement Monday.
Some of the largest companies in the United States are beginning to see all economic uncertainty expand into businesses. According to the conference committee, the CEO’s confidence hit a three-year high recently last month.
However, retailers have warned that Trump’s new tariffs will increase costs and consumer costs. Currently, major US airlines are also raising warnings about rising economic uncertainty. On Monday, Delta Air Lines cut its forecasts by citing “reducing consumer and business trust caused by increased macro uncertainty.” American Airlines and Southwest followed suit on Tuesday.
Some CEOs will have the opportunity to hear directly from Trump on Tuesday afternoon and perhaps air tariff concerns. He plans to address the Business Roundtable, the country’s largest corporate influence organization.
