President doubles down on controversial trade policy despite historic market losses and international backlash
The U.S. stock market just had one of its worst two-day stretches in history. Nearly $6 trillion evaporated from the S&P 500’s market value, and yet, Donald Trump is unfazed. “Sometimes you have to take the medicine,” he said on Sunday, brushing off the panic sweeping Wall Street.
The former president turned sitting commander-in-chief is calling this a necessary “correction” — one he claims will lead to “unmatched prosperity” for the United States. But for investors, foreign governments, and multinational corporations, the fallout is already brutal. And it’s just the beginning.
Tariffs Hit Every Country, Every Industry
It started with a single announcement last Wednesday: a new 10% baseline tariff on every trading partner. No exemptions. Some countries, especially those deemed “uncooperative,” are facing extra penalties of up to 26%. Trump framed it as a “Liberation Day” decree — a reset of global trade, designed to bring jobs and manufacturing back home.
But the market didn’t see it that way.
Stocks nosedived almost instantly. The S&P 500 lost $5 trillion by Friday’s close, marking its largest 48-hour wipeout in recorded history. On Monday, things didn’t look much better.
The tariff policy also slammed commodities. Oil dropped 7% in 24 hours. Copper, soybeans, and corn were all down. Meanwhile, bond yields tumbled as investors scrambled to park their cash somewhere — anywhere — safe.
Trump Says Countries Are ‘Dying to Make a Deal’
Despite the bloodbath on the trading floor, Trump is playing hardball. “We’re going to become a wealthy nation again, wealthy like never before,” he said on Sunday. “They’ll come back. They always do. They’re dying to make a deal.”
His messaging hasn’t changed much since his first presidency, but this time the scale is bigger — much bigger. Unlike previous rounds of tariffs that targeted specific regions like China or sectors like steel, this move hits everyone.
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10% baseline tariff on all U.S. imports
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Additional 5% to 16% on goods from China, Germany, and South Korea
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Luxury items from the EU, electronics from Taiwan, and auto parts from Japan face even steeper surcharges
The White House claims this strategy is meant to balance trade deficits and punish nations with “non-reciprocal” trade practices. Critics say it’s a blunt force weapon that risks sparking a global recession.
Countries Are Retaliating — Except a Few
Predictably, China came out swinging. Beijing imposed its own set of retaliatory tariffs within 36 hours, focusing on American agricultural goods, semiconductors, and commercial aircraft.
Europe isn’t far behind. The European Commission has drafted a response that would slap extra duties on American whiskey, denim, and Harley-Davidsons. A formal vote is expected later this week.
But not every nation is fighting back. India, Taiwan, and Indonesia have all said they will not impose counter-tariffs, hoping instead to cut their own trade deals with Washington.
One official from India told Reuters, “Sometimes staying in the room is smarter than storming out.”
Here’s a breakdown of responses so far:
| Country | Response Status | Tariff Action |
|---|---|---|
| China | Retaliation announced | 15-25% tariffs |
| European Union | Retaliation planned | Vote pending |
| India | No retaliation | Talks ongoing |
| Taiwan | No retaliation | Trade discussions |
| Brazil | Undecided | Monitoring impact |
Wall Street Is Bleeding, and It’s Not Just Tech
At the center of the sell-off were tech giants, but the pain spread fast. Apple, which sources a massive chunk of its hardware from China, lost $200 billion in market value in just two days. Amazon, Microsoft, and Tesla weren’t far behind.
But it wasn’t just the big names.
Financials, industrials, and energy stocks all got slammed. Even utilities, usually a safe haven during market chaos, saw a 3% dip.
One sentence.
Analysts say the sell-off is being fueled by panic and uncertainty — no one knows how far Trump is willing to go.
Investors Brace for Monday and Beyond
As markets opened Monday morning, the S&P 500 briefly dipped another 1.3% before clawing back some of the losses. Still, volatility is the name of the game now.
Wall Street insiders are split. Some hedge fund managers are quietly buying the dip, betting that cooler heads will prevail. Others are shorting everything from consumer goods to airlines, preparing for a prolonged downturn.
J.P. Morgan issued a note to clients warning of a potential 20% correction “if trade escalation continues unchecked.” Meanwhile, Morgan Stanley suggested investors hold tight and focus on companies with domestic supply chains.
Three sentences.
Nobody knows what Tuesday will bring. And that’s the problem.
Trump’s Inner Circle Remains Confident
Inside the White House, there’s no sign of cold feet. Senior advisors have reportedly urged Trump to hold the line, arguing that short-term pain is worth the long-term gains.
Trade Advisor Peter Navarro compared it to “resetting a broken bone.”
Meanwhile, Trump loyalists in Congress are calling it “economic tough love” — a necessary disruption to fix a system they say has been “rigged against America for decades.”
Still, not everyone’s buying it. Several Republican lawmakers privately expressed concern that the tariffs could backfire ahead of the 2026 midterms, especially if the market rout continues.
