Reciprocal Tariffs: Trump Lords ‘Once in Century’ Stock Routs
US President Donald Trump Image credit X.com @potus
Trump Etches Name as Top Stock Market Wrecker-in-Chief
By S Jha
New Delhi, April 4: In seven worst historic stock market routs, US President Donald Trump has a place of eminence. S&P companies lost a mammoth $2.3 trillion in stock valuation in Thursday rout.
Before Trump brought his heft to wreck stock market, the last crash took place in 1987 in the US bourses. Blamed on system errors, the US stock market plunged by a whopping 22.61 per cent. The crash was called ‘Black Monday’.
On Thursday, the famous ‘FAANG’ was battered. Stocks of Facebook, Apple, Amazon, Netflix, and Google collapsed. For decades, ‘FAANG’ stocks fatted with global craze to buy into them.
By sudden change in fortune, Trump’s reciprocal tariffs threaten to cut the umbilical cords of ‘FAANG’ companies with globalisation. Arnaud Bertrand, an entrepreneur, examined I-Phone maker Apple’s prospects with tariffs, saying that Tim Cook now needs to be most worried man in the US.
After 1987, the worst stock market rout came under Trump Presidency with the onset of Covid-19 pandemic. Trump’s first tenure witnessed seven extremely high stock market crashes. But one on March 16, 2020 when the stock market sang by almost 13 per cent in a single day took Trump into the league of seven worst equity rout in the US history.
Before Thursday, Trump had already knocked away $12 trillion in stock market valuation globally. “The stock market will boom,” Trump told reporters on Thursday amid Dow Jones Industrial Averages going down and down.
Analysts agree with Trump, for his first tenure had also seen significant stock market gains. But the rebound, argue analysts, was more to the reopening after the pandemic and liquidity slush than any economic geniuses of Trump.
Steve Rigby, a UK-based entrepreneur, joined his peers for an emergency meeting with Prime Minister Keir Starmer last night. “We are in uncharted waters and emotions are currently riding high…,” wrote Rigby on LinkedIn.
He further stated: “In the short term, as the global impact plays out, a proportionate UK response is exactly what’s required and it’s the right approach if we are to avoid a Trump slump or, worse still, a global recession.”
The much-feared recession has reared its head. US Federal Reserve Chairman Jerome Powell for months had been facing rants of Wall Street wolfs for inviting recession by not sufficiently cutting interest rates.
Powel in his last press conference was sagely, suggesting that Trump’s uncertainties is a bigger worry. In India, a note of defiance, nonetheless, is gathering steam. Tata Mutual Fund and many others counted India’s positives to duck Donald’s ditches of tariffs.
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