President Donald Trump has promised to “build the Greatest Economy in History,” but his administration’s trade policies have taken a toll on the stock market. The S&P 500 has dropped by 7%, the Dow Jones has fallen 6%, and the Nasdaq has plummeted 10% – a significant decline from Trump’s first term when the major indices rose about 5% in the first two months.
The market downturn comes as Trump wages an aggressive tariff war against the US’s largest trading partners. Tariffs on Chinese, Mexican, and Canadian products have sparked retaliatory measures from these countries, including China’s surcharge on American imports and Canada’s decision to strike back too. The European Union has also imposed its own taxes on American goods, citing “business-unfriendly policies” as the main concern.
Analysts warn of a potential recession due to Trump’s trade war, with JPMorgan chief economist Bruce Kasman stating that business-unfriendly policies increase the risk of a recession. Meanwhile, US economic growth is slowing, with gains in gross domestic product dropping from 3% to just above 2%. Consumer sentiment has also dipped 10% in March.
Despite the market downturn, Treasury Secretary Scott Bessent expressed confidence, saying he’s not concerned about “a little bit of volatility over three weeks.” However, Trump continues to escalate his trade war, threatening a 200% surcharge on European wine and champagne. The stock market reaction suggests that this approach may be unsustainable for US businesses and consumers alike.
Source: https://fortune.com/2025/03/17/trump-stock-market-tanks-sp-500-nasdaq-dow-jones-first-60-days