US President Donald Trump’s implementation of tariffs on several countries is causing concern about stock market volatility. The S&P 500 has dropped nearly 9% from its February record high, with inflation and growth fears rising.
President Trump says he’s not concerned about the market’s performance as he implements his protectionist agenda. However, economic experts have doubts about his stance. Marko Papic, chief strategist at BCA Research, believes a 15-20% decline in the S&P 500 would force Trump to reconsider his trade war.
The current market volatility could be a check on Trump’s power, with financial markets acting like the bond market used to, punishing governments with big budget deficits. Desmond Lachman, senior fellow at the American Enterprise Institute, thinks the speed and disorderliness of the sell-off will be key to determining Trump’s response.
As the economy weakens and the stock market continues to fall, other checks on Trump’s ability to impose his policies may emerge. This could lead to a consolidation of power that looks drastically different in just a few months’ time, with Trump potentially becoming a “lame duck” president.
Source: https://www.businessinsider.com/stock-market-sell-off-force-trump-drop-trade-war-tariffs-2025-3