President Donald Trump’s trade policies and tariff threats have caused economic uncertainty and market volatility in recent weeks. The stock market has taken a significant hit, erasing six months of gains in just three weeks. Many economic indicators have turned negative, and experts point to Trump’s trade war obsession as the primary culprit.
Consumer confidence began to decline steeply in late February, largely due to fears over the impact of tariffs. On February 21, the stock market took a dramatic turn, with major indexes beginning a decline that has continued since. In the past 18 days alone, the markets have given up half a year’s worth of gains.
However, broader economic indicators paint a more nuanced picture. While there has been some weakening, the situation is not yet a full-blown disaster.
Trump’s tariff threats rattle markets
The February jobs numbers and current quarter GDP growth estimates reflect this mixed outlook. The GDP growth estimate was revised down from 2.4 percent to 1.7 percent, indicating a slowdown but not yet a recession-level contraction. Trump has shown little interest in reassuring the markets or changing course.
In a recent interview, he downplayed recession risks, instead suggesting a “period of transition” as he pushes forward with his economic agenda. He has even announced additional sweeping tariffs, further escalating economic fears. The uncertainty surrounding Trump’s policies has left many wondering where his wild ride will take the economy next.
As the public and markets await answers, the economic waters remain turbulent. It remains to be seen whether Trump’s unconventional approach will ultimately lead to the economic resurgence he promises or if it will instead push the country closer to a painful recession.
