Investors are grappling with President Trump’s apparent indifference toward recent market declines.
An analysis of the president’s statements indicates a potential reason: His current priority is more on tariffs during his second term in the White House.
“The markets will fluctuate, but we need to focus on rebuilding our country,” he remarked on Tuesday, reiterating a trade-centered message that he’s sharpened amid rising market pressures.
The economic consequences are evident, with markets in a correction phase, escalating trade conflicts, Wall Street’s growing fears of stagflation, and Trump facing queries about these issues at nearly every public event lately.
Although Trump has made several adjustments to tariff proposals — including a suggested 50% tariff on Canadian steel and aluminum that lasted less than 8 hours on Tuesday — the self-identified “tariff man” has shown a strikingly consistent commitment to achieving long-term tariff revenues and restructuring the U.S. trading framework.
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This tariff-centric focus is not unexpected for those familiar with Trump, who emphasized tariffs consistently during his campaign in 2024. However, it has caused confusion for traders who anticipated a quicker shift in his stance once in office, as occurred during his first term.
Read more: What Trump’s tariffs signify for the economy and your finances
This time, Trump seems resolute in his tariff preferences, with markets persistently misjudging his willingness to endure discomfort.
In his initial 50 days in office — amid what some have humorously described as “Ross and Rachel” levels of uncertainty — Trump has launched a tariff agenda that could surpass the economic implications of his first term if it remains unchanged.
New blanket tariffs of 20% on China have been introduced, building on existing tariffs. The world’s second-largest economy now faces an overall tariff burden of around 30% with the enforcement of Trump 1.0 tariffs.
Additionally, 25% tariffs apply to various goods from Mexico and Canada, and a new 25% tariff on global steel and aluminum imports came into force this week.
“One unwavering aspect of Donald Trump’s approach is his love for tariffs,” noted Jason Furman from Harvard University’s John F. Kennedy School of Government during a recent Yahoo Finance Live discussion, echoing sentiments from trade observers close to Trump.
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“That’s the one area where there’s absolutely no wavering,” he further emphasized.
In fact, it is Trump’s perception of the markets that he is more likely to adjust.
Yahoo Finance previously identified five distinct phases regarding how Trump spoke about markets during President Biden’s tenure, noting significant shifts in his rhetoric aligned with Wall Street’s fluctuations.
Trump has frequently had the chance to temper his tariff rhetoric but has chosen not to, even before concerned business audiences clearly hoping for some relief.
“The tariffs could increase,” Trump cautioned on Tuesday night to a group of CEOs gathered by the Business Roundtable.
He voiced that tariffs are “a significant advantage, generating substantial revenue,” while telling business leaders that “the greatest benefit comes from relocating to our country and creating jobs.”
The president spoke to the Business Roundtable — which claims to be “the voice of America’s leading CEOs in Washington” — at their headquarters on Tuesday evening.
Roughly 230 of the nation’s top CEOs belong to the group, including several high-profile and potentially tariff-concerned leaders, such as Google (GOOG) CEO Sundar Pichai, Verizon (VZ) CEO Hans Vestberg, and JPMorgan (JPM) CEO Jamie Dimon.
This follows a series of cautionary statements from CEOs about tariffs across various sectors.
Ford (F) CEO Jim Farley colorfully warned that Trump’s tariffs could “create a significant gap” in the U.S. auto industry.
The leader of Rubbermaid expressed concerns about uncertainty, and the head of Lego voiced worries that tariffs might hinder his company’s growth in recent discussions with Yahoo Finance.
White House officials and Trump himself have often argued that the current market volatility is part of an economic “transition” that will ultimately lead to a stronger economy. They have also highlighted reports of companies considering expansion in the United States to evade the duties.
Certainly, Trump’s somewhat new “no pain, no gain” mindset has inspired a range of euphemisms from him and his supporters to downplay market concerns — from a “detox period” to “temporary turbulence” to “growing pains” — with the unified message that the president believes the ongoing disruptions are a necessary remedy in pursuit of his tariff objectives.
“I believe our nation needed to undertake this,” Trump reiterated on Tuesday.
Bill George, an executive fellow at Harvard University, remarked on Tuesday afternoon that, given Trump’s stance, one of the most prudent actions CEOs can take right now is “to maintain a low profile.”
The president has indicated he intends to pursue his tariff-focused strategy for the long haul but, true to form, he managed to inject some market criticism this week by suggesting that people invest during downturns.
“I have many incredibly smart individuals, friends of mine who are successful businesspeople,” he stated to reporters this week. “They are currently investing.”
Ben Werschkul is a Washington correspondent for Yahoo Finance.
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