NEW YORK, NEW YORK – MARCH 11: Traders operate on the floor of the New York Stock Exchange (NYSE) on March 11, 2025, in New York City. After the worst day for the markets this year, the Dow dropped nearly 500 points in morning trading. (Photo by Spencer Platt/Getty Images)
Spencer Platt/Getty Images/Getty Images North America
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Spencer Platt/Getty Images/Getty Images North America
President Trump has consistently shown a keen interest in the stock market, taking pride in its performance during his initial term and promising more investor-friendly policies for his next one.
However, his current focus seems to have shifted. On Tuesday, Trump reaffirmed his aggressive and disorderly new tariffs, despite the growing unease they are causing on Wall Street and elsewhere.
In a post on his Truth Social network, Trump declared that an additional 25% tariff on steel and aluminum imports from Canada would be implemented, bringing the total tax to 50%.
U.S. stocks declined again on Tuesday, following the market’s worst day of the year. By early afternoon trading, the Dow had dropped another 670 points, or 1.6%. The S&P 500 fell 1.3%, while the Nasdaq slipped 0.9%.
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Concerns among investors and economists are escalating regarding the economic impact of the tariffs and the risk they might trigger a recession. This fear could grow as companies respond to the continuing market instability, financial experts warn.
“In some respects, it’s a self-fulfilling prophecy,” remarks Peter Ricchiuti, a finance professor at Tulane University (and also a board member of NPR member station WWNO in New Orleans).
“If you anticipate a recession, you cut your capital expenditures, hire fewer people, and inadvertently lead yourself into a recession,” he explains.
Trump remains steadfast
Nevertheless, Trump seems determined to uphold his new tariffs, despite widespread apprehensions that they will raise costs for consumers and businesses, spike inflation, and worsen a global trade war.
In a Fox News interview broadcast on Sunday, the president avoided ruling out the possibility of a recession. Instead, he suggested that investors should prepare for “a period of transition” in the economy.
“We’re bringing wealth back to America. That’s significant. And there are always phases [where] it takes a bit of time,” Trump explained to Fox News.
This sentiment unsettled investors. By the close of Monday, the U.S. market had seen a $4 trillion drop in value, reverting all gains made since Trump’s election in November. Yet by that evening, the White House sought to downplay concerns from Wall Street.
According to White House spokesperson Kush Desai, “President Trump achieved historic growth in jobs, wages, and investment during his first term, and he is poised to replicate that success in his second.”
Some of the largest U.S. companies are beginning to experience the adverse effects of economic uncertainty on their operations — although their executives had been quite optimistic prior to Trump’s second term. Just last month, CEO confidence reached a three-year high, as reported by the Conference Board.
However, retailers have cautioned that Trump’s new tariffs will increase their expenses — and those of consumers. Major U.S. airlines are also raising warnings about the growing economic uncertainty. On Monday, Delta Air Lines revised its forecast downwards, citing a “decline in consumer and corporate confidence due to increased macro uncertainty.” On Tuesday, American Airlines and Southwest followed suit.
On Tuesday afternoon, some CEOs will have the chance to voice their concerns about tariffs directly to Trump. He is scheduled to speak at the Business Roundtable, an influential collective of the nation’s largest companies.
